President Trump’s executive decree calling for the training of a Bitcoin strategic reserve (BTC) and a crypto stock is a “pivotal moment” for industry, the KBW investment bank said on Friday in a research report.
The president ordered his administration to establish a Bitcoin strategic reserve to hold the assets that have been seized by the government. He also called for a stock of other types of digital assets.
KBW noted that the “largest superpower in the world had adopted several leading blockchain protocols”.
Bitcoin is the real winner here, because it is exclusively treated as a reserve asset, according to the report. No bitcoin will be sold and the government is also considering options to buy more cryptocurrency.
KBW believes that the government has around 198,000 Bitcoin. He noted that around 55% of this battery will be returned to Bitfinex, leaving a balance of around 86,000 tokens.
No details have been given on how the government plans to accumulate Bitcoin, but it could sell part of more than $ 800 billion in gold reserves to finance additional crypto purchases, KBW said.
Another option is another option, said the bank. These are cash obligations that include a “kicker” of Bitcoin and which could reduce government loan costs.
The government could also train partnerships with minors in the United States to receive Bitcoin royalties in exchange for tax alternatives or incentives, the report added.
Read more: Market experts weigh on Trump’s Bitcoin Strategic Reserve which withdraws $ 17 billion in potential BTC sale
