US Cryptocurrency Industry Urges Trump to "Stockpile Bitcoin as a Strategic Asset"

"Bitcoin Value Increase Helps Finances," Claim
Trump Also Expresses Strategic Reserve Opinion
Expert: "Value Unknown After 20 Years"

Executives and investors in the U.S. cryptocurrency industry have urged President-elect Donald Trump to stockpile Bitcoin as a strategic reserve asset at the national level, The Washington Post (WP) reported on the 27th (local time).

According to WP, they urged President-elect Trump to take a more aggressive stance. The idea is to purchase cryptocurrencies worth billions of dollars, hold them for decades, and then use them to pay off national debt when their value surges. The U.S. government currently holds foreign currency, gold, and oil as strategic reserve assets.

Cody Carbon, CEO of the Digital Chamber, a cryptocurrency industry group, argued, "If we do not stockpile this asset, which is like digital gold, hostile nations will have the opportunity to cash it out."

Andrew O'Neill, Director at S&P Global, said, "If, as cryptocurrency advocates claim, the purchasing power of the dollar declines over time compared to Bitcoin, it can be used to pay off national debt," adding, "This could break the 'spiral of debt' where debt begets more debt."

The U.S. government already holds Bitcoin obtained through criminal investigations and asset seizures. Currently, it sells these periodically. According to Arkham Intelligence, the amount is approximately $20 billion (about 27.864 trillion KRW).

At the 'Bitcoin 2024 Conference' event in July, President-elect Trump stated that if elected, he would retain 100% ownership of all Bitcoins currently held or acquired in the future and convert them into a core new strategic asset. Cryptocurrency industry executives oppose the U.S. government's sales of cryptocurrencies due to concerns over price declines. Although President-elect Trump has not expressed detailed opinions on related pledges since the election, WP reported that he is considering cryptocurrency supporters as a major financial institution leader.

Such claims are also emerging in the political sphere. Senator Cynthia Lummis has submitted a bill to purchase 200,000 Bitcoins annually over the next five years. Senator Lummis said she discussed this bill with President-elect Trump's transition team and claimed it could reduce the national debt by half.

However, experts have warned that such proposals carry significant risks. Cryptocurrencies are highly volatile, and buying Bitcoin now, when prices are near all-time highs, could result in wasted taxes if prices fall later. There are also concerns that strategic stockpiling of Bitcoin benefits existing holders. The U.S. government's Bitcoin purchases could cause prices to surge, allowing existing holders to sell and realize profits.

Mark Zandi, Chief Economist at Moody's Analytics, said, "There is no clear rationale for this," adding, "No one benefits except cryptocurrency investors. Especially if taxpayers have to pay, it is even less justifiable."

Ananya Kumar, Deputy Director of the Future of Money Initiative at the Atlantic Council's GeoEconomics Center, stated, "It is difficult to argue for preferring Bitcoin over gold or other stable assets because we cannot know what Bitcoin's price will be in 20 years."