How Trump’s Plan Could Reshape the Economy

Since Donald Trump’s victory in the American presidential election, government position on cryptocurrency has changed considerably. The Trump administration has introduced several Pro-Crypto policies, the most notable being the creation of a strategic reserve of American crypto.

But how will it work and what are the risks? Let’s decompose it.

What is the strategic reserve of the American crypto?

The Crypto Strategic Reserve is a fund managed by the government designed to contain Bitcoin and other cryptocurrencies, notably Ethereum, XRP, Solana and Ada.

This reserve should help the country manage financial challenges such as inflation and economic instability. It is also part of a broader effort to establish the United States as a world leader in the cryptocurrency industry.

A key element in this initiative is Bitcoin Act, a bill that suggests buying at least one million bitcoin over five years. The financing of this would come from the reallocations of the federal reserve, which means that taxpayers would not have to pay the bill.

Several states have also announced their intention to create their own cryptocurrency reserves, adding to the momentum behind this strategy.

How will the American crypto reserve be managed?

The Trump administration has already taken measures to meet major challenges in the regulation of cryptography.

• A special crypto working group was established under the American Securities and Exchange committee to create a clear regulatory framework.
• Trump recently signed a decree to move forward with the reserve. Once approved by Congress, it will officially become a reality.

Experts are skeptical

Despite the government’s support, many economists are not convinced.

In a December 2024 survey of 40 high -level economists, only one thought that the American crypto reserve would have a positive impact on the economy.

Steven Rattner, CEO of Willett Advisors, was very critical, calling the initiative “a waste of dollars of taxpayers aimed at enriching the cryptographic industry”.

Should the reserve focus only on Bitcoin?

A major debate is whether the reserve should only contain bitcoin or include other cryptocurrencies. CEO of Coinbase, Brian Armstrong, believes that the reserve should stick to Bitcoin, the simplest and most similar to gold.

“The Crypto Reserve Fund would better stick to Bitcoin, because it is the simplest and offers the clearest similarities with gold.”

Perianne Boring, CEO of the Digital Chamber, agree, claiming that the unique characteristics of Bitcoin make it a stronger candidate for a national reserve asset than other cryptocurrencies.

“The unique characteristics of Bitcoin make it a stronger candidate for a national reserve asset compared to other cryptos.”

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A disguised political decision?

Critics argue that the reserve concerns political favors more than on economic strategy.

During the elections, Trump’s campaign received massive donations from the cryptography industry. Ripple alone contributed at least $ 49 million to Fairshake, a Pro-Crypto political action committee that supported the Republican Party. The company also donated more than $ 5 million to the Trump inauguration fund.

Adding to the controversy, the Ripple XRP is one of the cryptocurrencies that should be included in the strategic reserve of American cryptography. This has raised concerns about whether the project is used to reward political donors.

The United States Strategic Reserve is an ambitious and controversial plan. While supporters say that he could strengthen the position of the country in the space of digital assets, criticisms are concerned about its execution, its economic impact and its political ties. The debate is just beginning.