Trump announces US cryptocurrency: What is it and why it matters | Donald Trump News

United States President Donald Trump on Sunday declared His government will create a national strategic cryptocurrency that will include five cryptocurrencies, adding that it will make the United States the “cryptocurrency of the world.”

In a statement about his social network of truth, Trump said that the cryptocurrency that was created after his inauguration in January was pressed forward with the creation of the reserve, performing promises He first made cryptocurrencies during his election campaign.

Following its message on Sunday, the values ​​of the mentioned currencies, including Bitcoin, rose, following what was a weekly decline.

This move came before the first of its kind meeting at the top of the White House crypto on Friday and is a significant turn in US policy. Former President Joe Biden's administration has collapsed in the industry because of suspicion of fraudulent transactions. Trump himself was a crypto skeptic in his first term as president. At the time, he had called Bitcoin, the biggest cryptocurrency – “fraud”.

In his Sunday message, however, Trump criticized Biden's era policies, calling them “corrupt.”

Trump said “cryptocurrency will raise this critical industry after years of corrupt attacks by Biden's administration … I will make sure the US is the cryptocurrency of the world. We make America great again. “

Here's what you need to know about the new American crypto reserve:

What will American cryptocurrency include?

In her publications on Sunday, Trump initially mentioned that the smaller currencies – XRP, Cardano and Solana – will represent part of the new national cryptocurrencies.

About an hour later, however, the president said in a separate post: “And obviously BTC and ETH … will be the basis of the reserve,” citing Bitcoin and Ethereum, the first two cryptocurrencies at market value.

The markets immediately responded favorably to the post, with Kardano jumping about 60 percent to $ 1.25 from a previous $ 0.65, according to Coinbase Crypto Exchange – although until Monday he settled again at about $ 0.97. Solana increased from about $ 150 to $ 170, and XRP jumped from $ 2.25 to $ 3, with both currencies increasing about 12 and 20 percent respectively.

Meanwhile, Bitcoin and Ethereum have won more than 10 percent, with Bitcoin reaching $ 94,000 from a previous $ 86,000.

During his campaign, Trump was courting cryptocurrency and promised aggressive measures to support currencies once in power. After winning the election in November, the cryptocurrency market witnessed unprecedented jumps – Bitcoin, for example, reached All the time of $ 109,000. However, the market slowed down the weeks afterwards.

Trump and first lady Melania Trump in January They released their own meme coins – Digital currencies inspired by viral trends, but this lacks the financial or technological support of actual cryptocurrencies.

Elon Musk, who leads Trump's government efficiency, also often encourages cryptocurrencies on his social media network X (previously Twitter).

What can be the goal behind cryptocurrency?

Owning digital currencies such as Bitcoin is increasingly regarded by governments as an alternative value store, as gold and as hedging against inflation. But some experts say the crypto market is highly variable and the price witnesses swing, making it a risk bet as an alternative value store – especially compared to gold.

Many countries that hold digital currencies seized in criminal investigations will be able to use cryptocurrencies as a legal tender.

Switzerland plans to decide on cryptocurrencies after a public referendum, while Brazil, Germany, Hong Kong, Poland and Russia are considering or taking steps to build them.

Currently, the US government has the largest possession of cryptocurrency of each country – 200,000 bitcoins – and Trump's position is being seen as increasingly occupying the reliability of different coins. If US cryptocurrency plans are moving forward, more countries are likely to enter the game because of the huge US impact as the biggest economy in the world.

Trump's cryptocutor will position America in front of the curve, giving it a significant impact on how international cryptocurrencies appear later.

And if the US government, through a reserve, has a significant short of the global volume of crypto tokens, it would be able to reduce the price instability of curtentyluy associated with these digital currencies.

In July 2024, Republican Senator Cynthia Lummis introduced a Bitcoin Law in Congress, which necessitated all state bitcoin to be transferred to the US Department of Finance and demanded that cryptocurrency. Lummis also said such a reserve would help the US manage its current bitcoin farms in a transparent manner.

“Bitcoin transforms not only our country but also in the world and becomes the first developed nation using Bitcoin, as savings technology provides our position as a global leader in financial innovations,” she said.

The bill is still being considered.

What other strategic reserves do the US have?

The only other strategic or emergency reserves that the US possesses are its huge oil reserves, known as the Strategic Petroleum Reserve (SPR), in Louisiana and Texas.

The US government describes the reserves as “the largest offering of an emergency raw oil in the world.” Up to 714 million barrels of raw is stored in underground salt caves, located in four separate sites of the Gulf of Mexico, according to the US government. It is supported by the US Department of Energy.

Rarely, the United States should have access to its raw reserves. The last time was in June 2011, when President Barack Obama directed that 30 million barrels would be released for sale to fill gaps caused by a conflict in Libya, a large oil production country. The reserves were first created in 1975 after Arab countries declared oil embargo on countries that supported the Israeli war in 1973 against Syria and Egypt.

Are there any other countries cryptocurrencies?

Only three currently treat cryptocurrencies as a legal tender:

• El Salvador: Since 2021, the government of the most bouquet has accepted Bitcoin as a legal tender that makes it the first country to make it. However, Yale researchers found a January 2024 survey that the coin did not see much benefit. In January, the government lowered Bitcoin rules, which is no longer useful for paying taxes and state accounts. Currently, El Salvador has about 6 088 bitcoin in his reserves, which are estimated at $ 558 million.
• Central African Republic: In 2022, the car accepted Bitcoin as legal tender, but it is not clear how much the country has in its reserves.
• Bhutan: In January, the city of Bhutan Gelefu consciousness adopted a policy for conducting cryptocurrencies such as Bitcoin and Ethereum in strategic reserves. Bhutan Mines and owns about $ 11,000 Bitcoin estimated at $ 1.1 billion according to Arkham Exchange.

In the meantime, several countries hold currencies like Bitcoin, often seized through actions of law enforcement. State farms include:

• USA: There are about 200,000 bitcoins, the highest of any country in the world, estimated at about $ 16.7 billion, according to Bitcoin Treasures, a trading website.
• China: Currently, cryptocurrencies are banned in China because the government is struggling to regulate them. The Chinese government is working on the creation of its own digital currency – which will be supported by the Chinese Central Bank. Currently, China owns about 194,000 bitcoins, worth about $ 16.2 billion (as of March 4), which was seized by Ponzi scheme companies.
• The UK: The United Kingdom government owns about 61 bitcoin, seized from international money laundering networks, according to Binance cryptocurrency. That's about $ 5 million.
• Ukraine: He has about 1,200 Bitcoin from public donations due to the ongoing Russian war against Ukraine. This is estimated at about $ 100 million.
• Finland: It owns about $ 890 Bitcoin – approximately $ 74 million – which were seized during drug trafficking investigations.
• India: He has 450 bitcoin seized during cryptocurrency investigations estimated at $ 37 million.