US President Donald Trump signed an order to create a strategic bitcoin reserve on Thursday, ahead of his meeting with leaders from cryptocurrency industry at the White House crypto summit on Friday. The reserve will be funded with bitcoin that the federal government has taken from criminals or civil asset cases. The news was shared in a social media post by White House’s crypto advisor and billionaire David Sacks.
What will Trump’s strategic reserve contain?
The strategic reserve is expected to contain bitcoin and four other cryptocurrencies. Earlier this week, Trump had revealed five digital assets that he plans to have in the reserve, which will lead to an uptick in their market values. These five digital assets are bitcoin, ether, XRP, solana, and cardano.
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It is not clear yet how this reserve will function or if it would help the taxpayers.
Conflict of interest
Trump’s backing for the crypto industry, which has spent millions of dollars supporting him and other Republicans in the November elections, has generated conflicts of interest.
Some Conservatives and crypto backers believe that it could delegitimise the crypto industry by giving advantages to an already rich community. However, proponents say that this strategic reserve would instead help the taxpayers in benefitting from the growth that crypto prices will see. There is no information yet on how the reserve will help in doing exactly that.
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Trump and his family have launched crypto meme coins, and the US President also owns a share in World Liberty Financial, a crypto platform. His aids say that Trump has given up control of his business ventures, which are being looked over by outside ethics lawyers.
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