A strategic Bitcoin reserve in the United States reduces the possibility that the government will ever “ban” the cryptocurrency and could encourage many more nations to adopt Bitcoin, according to crypto observers.

The first-of-its-kind reserve will be anchored by a stash of Bitcoin the government already owns, estimated to be worth billions of dollars.

U.S. President Donald Trump has signed an executive order to establish a strategic reserve of cryptocurrencies by using tokens already owned by the government, disappointing some in the market who had hoped for a firm plan to buy new tokens.

A simmering tension in the crypto industry resurfaced after President Donald Trump signed a long-awaited order creating a strategic Bitcoin reserve and an additional stockpile of other digital assets.

President Donald Trump signed an executive order creating a strategic bitcoin reserve as well as a U.S. digital asset stockpile on Thursday, a day ahead of the White House hosting a crypto summit.

The reserve will hold cryptocurrency forfeited to the government in criminal or civil proceedings, said the White House.

President Donald Trump announced plans to form the United States’ first strategic cryptocurrency reserve (SCR). Trump shared the news on his social media platform Truth Social, stating that the reserve will include Bitcoin,

President Donald Trump signed an executive order on Thursday to establish a "strategic Bitcoin reserve" and is hosting a "crypto summit" at the White House.

President Trump’s crypto summit with CEOs and investors follows executive orders trying to boost an industry whose reputation has been tarnished by scandals.