The United States government is assessing the feasibility of creating a national stockpile of a Strategic Bitcoin Reserve.
According to Scott Bessent, who previously served as Treasury Secretary under President Trump. Potential strategies for acquiring Bitcoin are currently being deliberated.
Although Bitcoin is the primary cryptocurrency being considered initially. Bessent specified that the concept is intended to be broader than just one digital currency.
The former Treasury Secretary highlighted the importance of first halting the sale of Bitcoin has been seized by authorities, before any increase in the reserve is contemplated.
Ex-Treasury Secretary Bessent Details Initial Steps and Strategic Vision for Bitcoin Reserve
When discussing the underlying reasons for creating the Bitcoin reserve. Bessent explained that the initial action should be to stop the existing practice of selling Bitcoin confiscated by the government, before proceeding with any further acquisitions.
“In my opinion, the prerequisite to accumulating a Bitcoin reserve is to first cease the current sales of seized Bitcoin,” he asserted.
Bessent further clarified, “The current holdings are derived from a pool of assets that have been seized.
To my understanding, approximately 500 million USD worth of Bitcoin was confiscated, and half of that amount has been liquidated.”
Bessent indicated that once responsibilities concerning the repayment of victims have been fulfilled, the remaining seized Bitcoin assets will be allocated to the newly proposed reserve.
He further mentioned that the Treasury Department will then proceed to assess various strategies to facilitate further acquisitions for the purpose of augmenting the reserve.
“Subsequently, we will determine the most suitable pathway forward regarding additional procurements to further populate the reserve,” Bessent concluded.
Although the initial emphasis is on Bitcoin, Bessent highlighted that the overarching initiative encompasses a wider perspective.
“Our starting point is Bitcoin; however, the ultimate aim is to establish a more comprehensive cryptocurrency reserve,” he elaborated.
In response to inquiries concerning the financial repercussions of the US government purchasing Bitcoin, particularly in light of the nation’s current deficit.
Bessent restated that the immediate imperative is to discontinue the sale of seized Bitcoin prior to formulating plans for acquisitions.
“Therefore, the preliminary step involves ceasing the selling process; following this, we will develop a strategic plan,” he stated.
Also mentioning that officials and specialists are scheduled to discuss the subsequent actions at the White House Crypto Summit.
Also Read: Coinbase Executive Says Trump’s Bitcoin Reserve Can Reduce $18 Billion of Sell-Side Pressure
