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The world’s attention has recently been drawn back to the United States after a preliminary document regarding establishing a Strategic Bitcoin Reserve (SBR) surfaced. The document is reportedly a leaked draft executive order published by the @btcpolicyorg account on social media platform X (formerly Twitter) on 18 December 2024. The document appears to be a follow-up to President DoIt appears to follow up on the government would establish a national Bitcoin reserve.
The Vision Behind the Establishment of SBR
In the draft document, Bitcoin is referred to as a strategic asset with significant potential to strengthen the stability of the US dollar. SBR is projected to be part of a permanent national reserve to support economic security. Due to its limited and decentralized nature, Bitcoin is also described as “digital gold.”
In line with this vision, some of the key policy points highlighted in the document include:
- Accelerating economic growth through Bitcoin to maintain US dominance in global financial markets.
- Diversifying national reserves with Bitcoin to strengthen the country’s economic security.
- Increasing the attractiveness of the US as a center for investment, innovation, and talent in digital assets.
This move has also gained support from industry figures such as MicroStrategy’s Michael Saylor, who even proposed that the US sell all its gold reserves to buy Bitcoin.
Mechanism for Establishing and Managing Bitcoin Reserves
If the draft is approved, the US Treasury Department will manage the SBR with strict oversight. Implementing a secure storage system is scheduled to be completed within a month of the draft’s formalization. The Treasury must also set security standards that include cryptographic verification to ensure the long-term protection of the country’s assets.
The source of funds to purchase Bitcoin comes from the Excs to invest around $21 billion or provides the funds to purchase Bitcoin equivalent to Rp337.7 trillion over a one-year per,. Bitcoin acquired through this program will be locked up for at least two decades to maintain national financial stability.
Bitcoin Sales Policy
The sale of Bitcoin reserves will only be made under certain conditions, such as an economic crisis or threats to national security. The asset liquidation process will require direct approval from the president with detailed justification. The government will publish public proof of reserves and Bitcoin ownership reports quarterly to ensure transparency.
State Initiatives
The central government and some states in the US, such as Ohio, Texas, and Pennsylvania, have also considered making Bitcoin part of them, including Bitcoin ine, and recently proposed the establishment of a Bitcoin Reserve Fund as an instrument of protection against inflation. Derek Merriblicans spearheaded the proposal through the Ohio Bitcoin Reserve Act (HB 70s spearheaded the proposal 3). On the other hand, Texas and Pennsylvania are drafting legislation to make it easier to establish similar Bitcoin reserves at the state level.
Potential Policy Impact
The United States’ move to make Bitcoin a strategic asset reflects a major global financial policy paradigm shift. If successfully implemented, SBRs can potentially strengthen the US’s international reputation as a leader in innovation in the digital economy.
However, the successful implementation of this policy still depends on final approval and coordination across agencies, including the Treasury, Federal Reserve, and Department of Defense.
With this plan, the US may not only adapt to global digital economy trends but also pave the way for a more inclusive and decentralized financial future.