The strategic Bitcoin reserve draft document in question has been making the rounds on X (formerly Twitter) with widespread approval from crypto netizens.
The draft was reportedly presented by @btcpolicyorg as an executive order focusing on making Bitcoin a strategic reserve asset within the Exchange Stabilization Fund (ESF). The two-page document addressed certain key points the institute recognized as important to cover in what many consider a preliminary draft.
Recommendations to gain a competitive advantage with Bitcoin
The executive order describes Bitcoin as a strategic reserve asset that can bolster the US dollar’s resilience. It also demands the establishment of a Strategic Bitcoin Reserve (SBR) to serve as a permanent national asset for economic security.
According to the draft, the US policy should include:
- Creating the Bitcoin reserve to grow the economy and maintain the US’s financial dominance in world markets.
- Making Bitcoin a strategic asset stored by the government to diversify national reserves and boost economic security.
- Striving to make the US the number one country for digital assets in terms of attracting investment, talent, and innovation.
The draft highlights the need for the United States to adapt to global trends in digital finance as this is the only way to maintain economic stability and leadership.
It also tags Bitcoin as a decentralized and finite store-of-value asset, with comparisons to digital gold — a sentiment many crypto stakeholders seem to agree with. MicroStrategy’s Michael Saylor has even gone as far as suggesting the US sell all its gold to buy BTC.
It may sound over the top, but Micahel Saylor has overtly supported Bitcoin, and his BTC gamble has paid off exponentially.
Establishment of the SBR and Bitcoin designation
According to the draft, the SBR will be handled by the Treasury Department, which will have strict oversight, including audits and security measures. The draft also recommended that any Bitcoins held by federal agencies should be transferred to the SBR within 7 days of the order’s issuance.
It also declared Bitcoin as a reserve asset suitable for holding within the ESF, with acquisition programs to begin within two months.
According to the acquisition program, about $21 billion in Bitcoin will be bought within a year using funds from the ESF. The purchases will happen under the watchful eyes of protocols to reduce mismanagement risks.
Within a month, secure custody frameworks are expected to be implemented and this could include partnerships with secure service providers. Meanwhile, it will be up to the Treasury to create stringent standards to promote long-term security, including cryptographic verifications and less reliance on third parties.
On sales from the SBR and transparency
According to the draft, long-term preservation will be a priority, which means that any BTC the SBR buys will be locked down for at least two decades to protect the country’s financial strength.
The documents say that Bitcoin sales can only happen under exceptional circumstances (e.g., economic or security crises). Asset liquidation will also require detailed justification and presidential approval.
The draft also proposed that when the sales happen, they will be done with transparency and minimal disruption. There will be a public proof of reserve and cryptographic receipt of Bitcoin holdings will be published quarterly to promote transparency.
The Treasury will be expected to provide reports on performance, security, and strategic benefits of Bitcoin within the ESF.
Coordination between the various government agencies, including the Treasury, Federal Reserve and Department of Defense, among others will be encouraged in alignment with national security and economic policies.
This draft has not been approved or signed, but many who have seen it seem to believe it is good enough.
David Bailey, the CEO of Bitcoin Magazine, shared screenshots of the draft. He also endorsed the document and mentioned that the president’s signature is the only step needed to fully implement the Bitcoin reserve.
The general sentiment among crypto stakeholders is that the draft is sufficient as a framework to integrate Bitcoin into America’s national reserves. If properly done, it could also boost the country’s security, long-term economic growth, and leadership in the crypto world.
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