David Bailey, CEO of Bitcoin Magazine, sparked debate on X with his statement that the U.S. President-elect Donald Trump could establish a strategic Bitcoin reserve (SBR) without needing congressional approval. He spotlighted that Trump could indeed adopt Microstrategy’s approach in BTC acquisition.
Trump to Create Strategic Bitcoin Reserve Soon?
According to Bailey, the President could initiate a Bitcoin acquisition program worth tens of billions of dollars. He noted, “To go bigger we’ll need Congress, but we can start right away at a MicroStrategy-esque scale.”
Bailey’s remarks align closely with Senator Cynthia Lummis’ recent proposal to establish a federal Bitcoin reserve. Lummis, an outspoken advocate for Bitcoin and blockchain technology, has revealed plans to introduce the “Bitcoin Reserve Bill” within the first 100 days of Donald Trump’s return to the presidency.
The verdict from the experts is the President has the authority to establish the SBR without Congress and implement a fairly large acquisition program (tens of billions of $). To go bigger we’ll need Congress, but we can start right away at a MicroStrategy-esque scale.
— David Bailey???????? $0.85mm/btc is the floor (@DavidFBailey) November 15, 2024
Lummis envisions the reserve as a safeguard against inflation, drawing parallels between BTC and gold as reliable stores of value. She believes that Bitcoin’s role in the national economy could help stabilize the U.S. dollar’s purchasing power.
Trump’s January return to the White House has boosted optimism among crypto advocates. Furthermore, Lummis appears determined to leverage the new administration’s policies to push for broader Bitcoin adoption. Her proposal aims to position the United States at the forefront of the global cryptocurrency movement.
The MicroStrategy Tactic in Play?
The potential adoption of an SBR mirrors the bold BTC buying strategy of MicroStrategy, which recently disclosed its acquisition of $2.03 billion worth of Bitcoin. The company also proposed a $42 billion Bitcoin purchase plan spanning three years. Bailey suggested the federal government could adopt a similar approach on a national scale, starting immediately under the President’s executive authority.
Since Trump’s electoral victory, Bitcoin price has surged to unprecedented heights, exceeding $93,400. The market’s bullish momentum reflects growing speculation over a crypto-friendly policy environment under his leadership.
Moreover, Lummis, known for her belief in Bitcoin’s transformative potential, regards the crypto as an essential asset for national resilience. Her proposal underscores the significance of BTC not merely as a currency but as a strategic asset for the U.S. economy.
Also Read: Donald Trump Administration to Sell Some Fed Gold to Buy 1M Bitcoins: Sources