President Donald Trump has signed an executive order establishing a government reserve of bitcoin, signaling a significant step towards mainstream acceptance of cryptocurrency. The order dictates that the U.S. government will retain approximately 200,000 seized bitcoins for their store of value, akin to a digital Fort Knox. The order also mandates a comprehensive audit of the government’s bitcoin holdings, which have never been fully assessed. Interestingly, the U.S. government had previously sold off 195,000 bitcoins over the past decade, missing out on a potential $17 billion if they had held onto them.

Formerly a bitcoin skeptic, Trump’s pivot towards embracing digital currencies has been evident, earning him the moniker of the “crypto president.” This move aligns with his campaign promises to promote crypto-friendly policies, as evidenced by planned industry-friendly legislation and a forthcoming White House “Crypto Summit.” Bitcoin’s role as a store of value, free from traditional financial institutions’ control, has propelled its popularity, with a market cap of approximately $1.7 trillion.

While the executive order did not immediately impact bitcoin prices, Trump’s endorsement of cryptocurrencies has influenced market dynamics. Additionally, the order establishes a “U.S. Digital Asset Stockpile” for seized cryptocurrencies beyond bitcoin, with Trump’s surprise announcement regarding lesser-known cryptocurrencies like XRP, solana, and cardano causing a temporary price surge. Overall, Trump’s executive order signifies a significant endorsement of cryptocurrencies and their potential economic implications.