David Sacks, the Cryptographic Tsar of the White House, has revealed the intentions of the Treasury Department to concentrate on increasing the value of Bitcoin, XRP and other digital assets that the United States government has. This, after the president of the United States, Donald Trump, signed an executive order to establish a strategic cryptocurrency reserve through the use of tokens already held by the Government.
Important cryptocurrencies such as Bitcoin (BTC), Ethereum (Eth), XRP, Solana (Sol) and Cardano (ADA) have been green for inclusion in reserves under this initiative. The announcement emphasizes the government’s will to improve its national financial position in the space of digital assets that change rapidly.
The moving cryptography reserve
One of the measures to bring virtual currencies to the government’s financial system is the Cryptographic strategic reserve. By including the aforementioned cryptocurrencies, the Government wants to diversify national assets and support advances in financial technology. This movement suggests that the probable economic impact of digital currencies is beginning to be more defined.
Treasury function in crypto management
Sacks has done everything possible about how the Treasury department plans to manage Bitcoin holdings and increase its value. The Treasury Secretary, Scott Besent, will supervise this effort. The approach emphasizes prudent management to maximize the potential yields of these digital assets.
https://www.youtube.com/watch?v=rbogjlpsdpy
According to Sacks, during the Podcast All In, the purpose of the reservation is “responsible administration.” He pointed out that it is “a place for custody, is a centralized account under the direction of the Treasury Secretary and the Treasury Secretary will discover how maximizing the value of these holdings.”
To put it in perspective, the Federal Government’s failure to completely use its Bitcoin assets resulted in a loss of $ 17 billion. Sacks states that the government used to have more than 400,000 Bitcoin tokens. But it has sold more than half of its holdings in the last decade for a little more than $ 350 million.
Market response
The introduction of the cryptographic strategic reserve has caused a Rank of answers from cryptocurrency market. Initially, the dissemination caused the values ​​of the related cryptocurrencies to increase abruptly.
As of today, the market cap of cryptocurrencies stood at $2.6 trillion. Chart: TradingView
The euphoria of the market was, however, moistened For subsequent comments that the reservation would consist mainly of assets obtained through decisions, without immediate intentions for new acquisitions. For example, Bitcoin experienced a 5% decrease, ultimately, falling below the crucial level of $ 80,000, while Ethereum and XRP fell 3% and 4% each.
Image: Gemini Imagen
Congress views on the initiative
The viability and implementation of the proposal has promoted discussions within the Congress. President Tim Scott, of the Chamber Banking Committee, recommended a cautious approach, stating that a delay is necessary until Congress is more equipped to address the complexities of incorporating cryptocurrencies into national reserves.
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