After months of speculation and election promises, the administration of Donald Trump finally goes from promises to acting on the American strategic Bitcoin reserve (SBR). Patrick Witt, deputy director of digital asset policy at the White House and the temporary head of the Pentagon for strategic capital, yesterday revealed the details of this ambitious project during Bitcoin Policy Summit.
From promises to specific actions
Witt confirmed the long -awaited information – the administration is preparing a “report on inter -welfare activities” regarding Bitcoin. What’s more, he revealed that the government “has already taken some steps as part of the Bitcoin strategic reserve” and is working on how to continue with a specific accumulation plan. “
This is a breakthrough news. Earlier statements of Hines, who from March argued that Washington should “acquire as much bitcoins as we can responsibly” were only political signals. Meanwhile, Witt’s words bring an official weight. His position in the command chain means that the institutional mechanism has actually been launched.
Although we have not yet learned the final form or how to accumulate bitcoins through the White House, according to previous promises, this is to be done without additional costs for taxpayers. Here are some examples thanks to which the American government could accumulate new bitcoins for the reserve:
Potential reserve financing scenarios
Doge savings as a source of capital
The most obvious source of funds can be savings generated by the Department of Government Efficiency (Doge) by Elon Muska. Doge claims that he has already saved $ 180 billion by canceling contracts, completing grant programs and the liquidation of unused software licenses. Although analysts question the accuracy of these numbers, even a partial redirection of real savings for the purchase of Bitcoin could significantly increase the strategic reserve without new budget expenditure.
Monetization of wasted electricity
The second scenario uses the huge problem of the American energy economy – wasting surplus of electricity. In 2022, California herself wasted 2.4 energy terawat hours from renewable sources – enough to power 220,000 houses throughout the year. In Texas, cryptocurrency miners absorbed 1.3 TWh of wasted wind energy in 2022, generating $ 60 million revenues for wind farms.
The federal government could launch a program in which excess energy from federal projects would be automatically addressed to the state mining centers of Bitcoin mining. The “Controllable Load Resources” program in Texas pays miners for the consumption of wind energy surplus at night, reducing the waste of 22% in 2023 and stimulating $ 400 million new investments in wind farms.
Pentagon as a strategic investor
The Strategic Capital Office of the Pentagon (OSC) currently has $ 5 billion and offers loans up to $ 150 million for companies developing strategic technologies, including energy infrastructure. Witt simply suggested that part of this capital could be directed to Bitcoin’s computing infrastructure, offering miners to cooperate with OSC as “first choice lender”.
Use of waste gases
The next variant concerns the use of gas flare – the process of combustion of surplus natural gas during oil extraction. The burning of gas flare emits 270 million tons of CO2 annually. Companies such as Crusoe Energy are already using this gas to supply cryptocurrency mines, reducing emissions by 63% compared to combustion. The government could launch the incentive program in which energy companies would receive tax breaks for redirecting gas flare to government digital mining operations.
Modernization of the confiscation system
The US currently has about 200,000 bitcoins with an approximate value of $ 20 billion, mainly from confiscation. According to the White House, “premature sales of Bitcoin have already cost American taxpayers over $ 17 billion.” Instead of continuing sales, the government can use these assets as security for loan programs supporting American energy and technological infrastructure.
Geopolitical game about the future of the monetary system
Witt does not hide that SBR is more than just a financial investment. He called Bitcoin a “tool of modern diplomacy”, arguing that the country shaping the new monetary architecture will be influenced by the comparable to American dollar hegemony during the Bretton Woods system.
“If we do not actively shape and influence what this new construction looks like, we will be in an adverse situation,” he warned during the speech. His third argument was geopolitical: Bitcoin as a boundless financial medium can extend the financial inclusion to “billions of people without access to banking or living under irresponsible regimes”, thus opening new markets for American capital.
July report – key moment
The inter -magical report, which is to hit the president’s desk at the beginning of July, will be a breakthrough document. It is already known that it contains the contribution of the Treasury Department, the Council of Economic Advisors, the National Security Council and financial technologists from the OSC. Witt described the document as “the best political product that we can create as a possible part”. “Under the possible” refers to not burdening the budget and taxpayers.
Will America really become “crypto-world of the world”, as Trump promised during the campaign? The July report can give the first definitive answer to this question. One thing is certain – if the administration manages to implement a Bitcoin accumulation plan without charging taxpayers with additional costs, it will have far -reaching consequences not only for the American economy, but for the entire global financial system.
