With this development, US President Donald Trump went one step ahead. Back in March, the Trump government introduced a new executive order instructing the government to set up a federal institution to hold Bitcoins. It is being discussed similarly as how gold is being deposited with the government in Fort Knox.
According to Morgan Stanley’s perspective, if the US were to maintain between 12% and 17% of the top crypto’s supply, it would be comparable to the treatment of other currencies in global reserves. That would involve sitting on about $370 billion in BTC to equal its international market significance.
While this is happening, European governments are maintaining distance. The UK has already dismissed the possibility of holding Bitcoin in reserve. During the FT Digital Asset Summit, Economic Secretary Emma Reynolds indicated that the government will look at regulating crypto and applying blockchain to public finance—but not holding BTC.
In Switzerland, the central bank similarly made a decision: during its annual meeting, Swiss National Bank President Martin Schlegel stated that cryptocurrencies do not provide the long-term protection of value required for reserves. He cited abrupt declines in liquidity as one of the primary threats.
Featured image from Gemini Imagen, chart from TradingView
