More institutions could be attracted to cryptocurrencies as a safer investment class. Maximalists of decentralization will not applaud that such a powerful state manages funds in BTC. Complying with what was promised during his presidential campaign, Donald Trump signed an executive order authorizing the Secretary of the Treasury to create and administer a Bitcoins reserve confiscated by the United States government. The decree establishes that government agencies must transfer any BTC seized to this reserve in a period of 30 days, and that these assets will not be sold but preserved for strategic purposes. In addition, it is clarified that Bitcoin will not be the only cryptocurrency in this reserve, validating Trump last Sunday, when he stressed that Cardano (ADA), XRP and Solana (Sun) will also be part of it. This was, without a doubt, the most anticipated promise by the bitcoiners. With the implementation of the executive order, The US president can boast of fulfilling his commitmentssince, since his arrival, he pardoned Ross Ulbricht, repealed controversial norms such as SAB 121 and promoted key appointments in various agencies, which have taken a radically different course from the Biden administration. A clear example is the new stock and values commission (SEC), currently under the direction of the interim Mark Uyeda. The entity formed a working group led by Hester Peirce, which has been dedicated to promoting a much more open and proactive approach. In fact, in recent weeks, the SEC has abandoned the litigation that it maintained against important companies in the sector, such as Coinbase, Kraken and Unisswap. Without a doubt, a change of perspective is brewing. It is not about paying for anyone – a very less politician – for complying with what is promised, but the facts must be informed as they are, especially with the implementation of the recent executive order. It is true that, although this firm has been held by many users and specialists in the industry, it has also generated some skepticism among some, who They expected guarantees that the country would commit to periodic purchases of BTC. The order, however, only clarifies that funds seized will be used, instead of following the example of El Salvador. Although the origin of the complaints is understood, it is important to highlight that the decree opens the door to the implementation of neutral strategies to acquire additional bitcoins. This means that the government could establish agreements with private companies, investment funds and other actors in the sector to facilitate the purchase of more BTC, issue specific bonds or create financial instruments to enrich its reservation. Sincerely, I think that positive aspects exceed the negatives and that this could be the beginning of something promising. However, it will be necessary to be patient. It was an open secret that would announce that they would maintain the BTC they already had, but the issue of using public funds for constant investments is much more difficult.
Trump's executive order opens the door to BTC neutral purchases. Source: Official Portal of the White House. Aware that some think the opposite – as the maximalist bitcoiners, which do not support the inclusion of other cryptoactives in the reserve -, I think that both Bitcoin and the cryptoactive market in general will be benefited by this measure. The challenge, of course, are the excessive expectations that the market sometimes has, but in the medium term this could add Another layer of legitimacy and stability to the industry. Seeing that the creation of Satoshi Nakamoto has the support of the US government, there will be new investors willing to buy BTC, which, as is evident, will result in greater stability for the market. Users who already resort to Bitcoin for daily transactions or as a refuge of value will probably enjoy a more transparent regulated environment. In fact, the same administration of Donald Trump could take a great benefit from the creation of this reserve. First, because The US government would ensure an even greater influence on the cryptocurrency ecosystemand second, because it would open the door to the use of that position to strengthen its power in international negotiations. In a geopolitical scenario where cryptocurrencies play a relevant role in commercial agreements or even debt, the US government would have the ability to use certain holdings in BTC or other assets as a key tool. It should be reiterated that, although many consider that the inclusion of Altcoins is nothing more than an attempt to settle political favors – and they are probably right – it is unlikely that these projects threaten the essence of the initiative. An orderly and transparent management of digital assets by the US government. Uu could motivate new corporations to see cryptocurrencies, especially Bitcoin, as a safer investment. In addition, companies that have already adopted BTC could obtain additional benefits, provided that the flow of government policies that promote greater stability is not interrupted. In short, Many companies, regardless of whether they operate in the technological sector or not, would have reasons to applaud.
From El Salvador they consider that Trump's executive order is a step in the right direction. Source: @stacyherbert
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It is important to keep in mind that, although the government insists that taxpayers will not be affected, In practice they could end up indirectly assuming the cost of new infrastructureorganizations or systems specialized in cryptoactive management. And that's not all. If we look to the future, no matter how much the Trump administration promises not to sell cryptocurrencies, even if market volatility plays against it, A new government could get and find a treasure full of bitcoins ready to sell. After all, politicians are petty by nature and, unlike what many believe, the last thing that sleeps is the well -being of people. On the other hand, the skepticism of the most adherents to decentralization cannot be ignored, given the idea that such a powerful government directly manages funds with Bitcoin. For them, BTC is not made for states, since Its essence is precisely to eliminate any type of intermediary, including traditional banks and governments themselves. In certain circles of the community, this would be seen as a direct attack on the original vision of Satoshi. While the creation of the American reserve feels a precedent for other countries to follow the same path, as the CEO of Coinbase and Changpeng Zhao, former executive director of Binance, also also pointed out, also It is likely that many governments and institutions see this as a threat to their own interests. In response, bureaucrats could try to convince people that, although they recognize the potential of digital currencies, these are «perfect for illicit activities.» Thus, they would present the invasive digital currencies of Central Banco (CBDC) as the «best solution» to eliminate the risks – classily, these have already been prohibited by the current United States government. For now, The most sensible thing is to keep calm and avoid both excessive enthusiasm and absolute pessimism. The creation of this reserve is a significant step, but there are still many unknowns about its implementation and its long -term effects. Not all issues are black or white, and it is crucial to analyze this measure with balance, without losing sight of the principles that have led Bitcoin so far: decentralization and resistance to state manipulation.
Discharge of responsibility: The views and opinions expressed in this article belong to its author and do not necessarily reflect those of cryptootics. The author's opinion is informatively and under no circumstances constitutes an investment recommendation or financial advice.