According to Arkham Intelligence, the U.S. government currently holds over 183,000 Bitcoin, valued at approximately $12 billion, making it the largest governmental holder of the cryptocurrency. In addition to Bitcoin, the government possesses 50,000 Ether, $121 million in Tether, 40,000 Binance tokens, and over 10 million of Circle’s USD Coin. The government’s latest transaction involved transferring 29,800 Bitcoin to an unidentified wallet on July 29, highlighting the ongoing strategic management of its crypto assets.
Bitcoin as a Strategic Reserve Asset
At the Bitcoin 2024 conference in Nashville, Tennessee, Senator Cynthia Lummis introduced a bill to designate Bitcoin as a strategic reserve asset. She proposed that the U.S. government acquire 5% of Bitcoin’s total supply to help reduce national debt and combat inflation. Former President Donald Trump, during his keynote address at the conference, also supported retaining the government’s Bitcoin holdings. Trump emphasized his desire to foster a robust Bitcoin industry in the U.S., advocating for minimal regulation.
Presidential Candidates’ Views
In addition to Trump, presidential candidate Robert F. Kennedy Jr. proposed a similar idea. Kennedy pledged to transfer the government’s Bitcoin holdings to the Treasury and acquire 500 Bitcoin daily until the U.S. held 4 million Bitcoin if elected president. These proposals suggest a growing interest among U.S. politicians in leveraging Bitcoin as part of the national economic strategy.
Also Read: US Moves $2 Billion in Bitcoin After Trump’s Pro-BTC Speech
Skepticism and Future Prospects
Despite this support, skepticism remains. Ari Paul, CIO at BlockTower Capital, estimates only a 10% chance of Bitcoin being adopted as a strategic reserve asset by 2028. Paul argues that informal political promises are insufficient to establish an official Bitcoin reserve. The debate over the role of Bitcoin in the U.S. economy continues to intensify as the government’s crypto holdings grow.
The U.S. government’s increasing involvement in cryptocurrency, especially Bitcoin, is generating significant discussion about its potential role in national economic strategy. As political figures and experts weigh in, the future of digital assets on the geopolitical stage remains uncertain, with far-reaching implications for the global financial landscape.
