Crypto Candidates: Trump and Others Push for National Bitcoin Reserve

At a crypto convention, Donald Trump suggested the establishment of a national bitcoin stockpile for the U.S., echoing proposals by other politicians. The U.S. government already holds a significant amount of bitcoin, primarily from criminal seizures. Such a reserve could influence bitcoin prices but raises questions about the feasibility and broader market implications.

Donald Trump advocated for a national bitcoin stockpile at a crypto convention in Nashville. His proposal aligns with similar ideas from Senator Cynthia Lummis and independent candidate Robert F Kennedy Jr. The goal is to use the U.S. government's existing bitcoin reserves as a strategic asset.

The U.S. currently holds around $11.1 billion worth of bitcoin, most of which has been acquired via criminal seizures. As of now, this amounts to approximately 1% of the total global bitcoin supply. Comparatively, big non-state investors also hold substantial amounts, with Michael Saylor's Microstrategy possessing 226,500 tokens.

Mark Connors from Onramp Bitcoin claims such a reserve would boost bitcoin's price, though it could reduce the number of tokens available for trading. Other observers, like Frank Kelly from DWS Group, note the complexities in managing such a reserve. Despite uncertainties, digital assets have become a focal point in the political arena, a trend expected to continue beyond November's elections.

(With inputs from agencies.)