The U.S. Establishes Strategic Bitcoin Reserves: The Position of Digital Gold Is Established, and the Global Financial Order Welcomes Change

On March 6, 2025, Trump signed the executive order “Establishing a Strategic Bitcoin Reserve and U.S. Digital Asset Reserve,” and the next day held the White House Crypto Summit. This marks the arrival of another important milestone in the crypto industry.

U.S. Strategic Bitcoin Reserves: A New Financial Chessboard

From the perspective of the U.S. government, establishing a Bitcoin strategic reserve aims to strengthen its dominant position in the global financial system. The executive order clearly states that while the U.S. government holds a significant amount of Bitcoin, it has yet to develop relevant policies to leverage the strategic value of these assets in the global financial system. Just as it manages other resources properly, the U.S. must fully utilize the potential of digital assets to promote national prosperity.

Historically, the United States has established strategic reserves multiple times, including:

1. Strategic Gold Reserves: The gold standard was implemented in the 19th century, President Roosevelt prohibited private ownership of gold in 1933, introduced the Gold Reserve Act in 1934, passed the Bretton Woods system in 1944, and until 1971, President Nixon announced the decoupling of the US dollar from gold.

2. Strategic Petroleum Reserve: In 1974, the United States reached a petrodollar agreement with Saudi Arabia and other countries, and in 1975 established the Strategic Petroleum Reserve. In June 2024, the US-Saudi petrodollar agreement expired and was not renewed.

In addition, there are strategic reserves of uranium, rare earths, silver, and grain. Less than a year after the end of the petrodollar system, the United States established a strategic Bitcoin reserve, indicating that the consensus on “digital gold” has become quite solid.

Strategic Considerations for the U.S. Strategic Bitcoin Reserves

1. Consolidate the financial hegemony of the US dollar

For a long time, the US dollar has dominated the global financial system. However, with the changing global economic landscape and the rise of emerging economies, the dollar’s hegemonic position is facing challenges. Bitcoin, as a decentralized digital currency, has the unique advantage of global circulation, free from the control of traditional financial institutions and governments.

If the United States can strengthen the connection between the dollar and cryptocurrencies and take the lead in establishing a Bitcoin strategic reserve, it will help occupy the commanding heights in the crypto field, incorporate the crypto market into the dollar settlement system, and thus consolidate the international financial transaction position of the dollar in the new financial era.

At the White House cryptocurrency summit, Trump stated that establishing a Bitcoin reserve is like creating a “virtual Fort Knox.” He also mentioned that Congress is pushing for legislation regarding USD stablecoins and the regulation of the digital asset market to ensure the long-term stability of the dollar’s status.

From a top-level design perspective, this may be the first public announcement of such a strategy. However, in reality, American companies have already laid out key tracks in the crypto field, including asset issuance, securitization, trading, and custody. What is most urgently needed now is a clear regulatory framework to protect the crypto industry from ambiguous regulatory pressures.

2. A tool against inflation

In theory, establishing a strategic Bitcoin reserve can hedge against inflation to some extent.

The total amount of U.S. federal government debt has exceeded $36 trillion, setting a new historical record. The debt-to-GDP ratio continues to rise, reflecting that the growth rate of debt surpasses that of the economy. In 2024, the interest expenses of the U.S. federal government will reach approximately $882 billion, imposing a huge fiscal burden.

Bitcoin, as “digital gold”, may become a potential tool to combat inflation and address national debt issues. With a fixed total supply, Bitcoin is viewed as an ideal inflation hedge.

In addition to consolidating the dollar’s hegemony and combating inflation, the U.S. government has other reasons for establishing a strategic Bitcoin reserve: the demand for financial innovation, global financial competition, Trump fulfilling his campaign promises, and the increasing influence of crypto-related interest groups in government decision-making.

The Profound Impact on the Cryptocurrency Market

The content of the executive order did not meet market expectations.

The main content of the executive order includes:

1. Establish an office to manage “strategic Bitcoin reserves”, with funds coming from confiscated Bitcoins, which must not be sold.

2. Establish an office to manage “U.S. Digital Asset Reserve”, responsible for managing all digital assets except Bitcoin.

3. Develop strategies to acquire more government Bitcoin without increasing the budget and taxpayer burden.

This plan did not meet market expectations, mainly because the previously rejected “Bitcoin Act” proposal to purchase 1 million Bitcoin raised higher expectations.

The federal level is advancing crypto-related legislation.

Currently, there are three main crypto-related bills being promoted at the federal level:

1. H.R.148: Keep your Coins Act of 2025
2. S394: GENIUS Act of 2025
3. HRes111: Resolution supporting blockchain technology and digital assets

Trump hopes to sign the US Dollar Stablecoin Innovation Act (GENIUS Act) before the recess in August.

State governments’ strategic Bitcoin reserve bill

In addition to the federal level, some state governments are also actively promoting the legislative process for strategic Bitcoin reserves, such as Arizona, Texas, New Hampshire, and Oklahoma. The content of the bills varies by state; for example, Oklahoma proposed to invest 10% of public funds in Bitcoin or large digital assets, while Kentucky proposed to invest up to 10% of remaining cash in large cryptocurrencies and approved stablecoins.

Overall, Trump’s strategic Bitcoin reserve executive order is favorable in the long run. The policy environment may remain friendly in the coming years. Although there are no large-scale accumulation plans at the federal level, proposals at the state level, if passed, could lead to substantial investment. In terms of market supply and demand, the Bitcoin confiscated by the government is deposited into reserves and cannot be sold, reducing market selling pressure; at the same time, this decision may attract more investors and institutions to focus on Bitcoin, and even trigger other countries to follow suit in establishing strategic reserves.

As Michael Saylor said, the moment the United States establishes a strategic Bitcoin reserve will be remembered by history, marking a turning point in the financial and geopolitical landscape of the 21st century.