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US Treasury Targets Bitcoin and XRP Growth – Big Win for Crypto?
The United States Treasury has revealed its ambitious plans to create a strategic reserve of cryptocurrencies, sparking mixed reactions within the crypto community. The initiative, dubbed the “Crypto Strategic Reserve,” will see the government accumulate and hold a significant amount of digital assets, primarily comprising Bitcoin (BTC) and Ripple’s XRP.
According to reports, the treasury department has already amassed an impressive portfolio of over 400,000 BTC tokens, worth approximately $17 billion. However, instead of maximizing their value by actively trading or using them for transactions, the government has opted to hold onto these assets as they have been forfeited in various legal proceedings and tax settlements.
Sacks, a prominent figure in the cryptocurrency community, believes that this oversight has resulted in an enormous loss, potentially amounting to $17 billion. He emphasizes that the government should take control of its digital assets by actively trading them, ensuring the maximum possible value.
The market’s initial response was overwhelmingly positive, with the prices of both Bitcoin and XRP surging following the announcement. However, once it became clear that the reserve would not be engaging in any new acquisitions or active trading, the euphoria wore off, and the markets corrected.
Market experts predict a significant impact on the cryptocurrency landscape, as the Treasury’s newfound involvement could potentially boost investor confidence and drive adoption.
In the long term, this strategic move may have far-reaching implications for Bitcoin’s price. According to recent data, it is expected that the US government will continue to accumulate more assets over time.
The move has garnered significant attention from Capitol Hill, with some lawmakers expressing concerns about the potential risks and regulatory challenges associated with holding cryptocurrencies.
Chairman Tim Scott of the House Banking Committee recommends caution, urging a delayed approach until Congress can better understand the intricacies of incorporating cryptocurrencies into national reserves.
Despite these setbacks, many are optimistic that this move will eventually benefit the cryptocurrency market as a whole.
Source: https://bitcoinist.com/us-treasury-targets-bitcoin-and-xrp-growth-big-win-for-crypto/
