TradingKey - The U.S. claims it will buy as much Bitcoin as possible to widen the gap with China and establish absolute dominance.
According to market sources, Bo Hines, Executive Director of the Digital Assets Task Force appointed by U.S. President Trump, told attendees at a closed-door roundtable hosted by the Bitcoin (BTC) Policy Institute that the White House plans to purchase as much Bitcoin as possible.
The news has been confirmed by a White House official, who stated that all Bitcoin purchases will be budget-neutral and will not cost U.S. taxpayers a single penny.
Previously, when signing the executive order, Trump also made it clear that no taxpayer funds would be used. Instead, the U.S. government would convert 198,000 confiscated Bitcoins into reserve assets.
The Trump administration's decision not to use fiscal funds to purchase Bitcoin has significantly dampened market bullish sentiment but also reduced resistance to the plan's implementation. In fact, if the Trump administration had directly used fiscal funds, it could have sparked opposition from various factions and the public, potentially derailing the plan.
Currently, the U.S. holds the largest amount of Bitcoin globally, but its lead over China's 190,000 BTC is minimal, which may be the driving force behind the U.S. continuing to increase its holdings. Recently, U.S. Senator Cynthia Lummis proposed a bill requiring the U.S. to purchase up to 1 million Bitcoins within five years.