Donald Trump’s plan to create a strategic crypto reserve aroused a great impact on global markets. The focus of discussions is how this move will affect the position of Bitcoin (BTC) worldwide.
According to Matt Hougan, the asset management company Bitwise’s chief investment manager, the creation of this reserve can lead to Bitcoin to be accepted as a critical asset in the global currency system. In a statement published by Hougan, this attempt can trigger a global Bitcoin purchase race.
Bitcoin reserve can exacerbate global competition
Hougan asked the following question, claiming that this move of the US will put pressure on other countries:
If you are Honduras, Mexico or Guatemala and see that the US bought Bitcoin after El Salvador, can you continue with the zero Bitcoin reserve? Either Dubai, Qatar or Saudi Arabia? Can they ignore these developments while Abu Dhabi and the US leadership are seized? What about Russia and China?
Hougan stated that Bitcoin’s supply is limited, and that the increasing price of globally increasing the price of increasing purchases will rapidly raise the price of the US, the US approved Bitcoin as a reserve asset will encourage other countries to take similar steps.
El Salvador and Abu Dabi are pioneering
El Salvador has been the only country that officially accepted Bitcoin as a strategic reserve presence. While Abu Dhabi’s Egemen Fund is purchasing Bitcoin, the Bhutan government level has been conducting mining activities at the level of government, but has not yet announced an official reserve. In addition, many countries hold the Bitcoins, which he seized as a result of various legal processes; The country with the largest Bitcoin reserves is the USA.
The White House is preparing for the crypto summit
US Trade Minister Howard Lutnick said in an interview with The Pavlovic Today, the strategic Bitcoin reserve model will be announced at the White House’s crypto summit. Lutnick said that Trump believes in the necessity of this reserve and said, “Now the real question, how to handle other crypto currencies,” he said.
David Sacks, responsible for artificial intelligence and crypto policies, will be chaired by the summit to be held on Friday. This working group operates independently of the SEC’s Crypto Task Force.
Hougan emphasized that this development shows that the US has officially accepted Bitcoin as a strategic asset for the first time, and that this step would have a great impact in the markets.
As we have quoted as Kriptokoin.com, the expected vote for the defi sector has also ended today.
