According to Bo Hines, executive director of the Presidential Council of Advisors in Digital Assets, the Trump administration may consider the use of revenues from tariffs to create a Bitcoin National Reserve.

The statement signals a change of direction, as there was previously indication that the resources to finance this reserve would come from the sale of gold.

Trump tariff recipes to finance US Bitcoin Reserve

Bo Hines explained the possibility during recent interviews. He cited the US need to act rapidly in the midst of global competition for Bitcoin’s accumulation.

Hines emphasized that the US should compete globally in Bitcoin. He highlighted the creation of a Bitcoin Strategic Reserve (SBR) through neutral budget means. This, he said, includes innovative financing mechanisms such as tariff revenues.

SBR recognizes the value of what Bitcoin is and how it can be used for the American people. There is a finite number of bitcoin and I think there will be a race to accumulate, hines stated.

He reiterated this in an interview with Anthony Pompliano, founder and CEO of Professional Capital Management. Bo Hines discussed the reevaluation of tariffs, bitcoin and gold during the conversation. He classified them as key components of the administration’s macroeconomic strategy.

The strategic reserve is just the beginning. We are thinking for a long run which assets can enable the American people and isolate us from global shocks, Hines these a Pompliano.

This plan is different than Republican Senator Cynthia Lummis from Wyoming proposed. Beincrypto reported that she introduced legislation to increase government reserves from the government selling a part of Federal Reserve.

We will convert surplus reserves to our 12 Federal Reserve Banks to Bitcoin over five years. We have the money now, these Senator Lummis in July at the Bitcoin 2024 conference.

The idea of ​​using tariff recipe to buy bitcoin is new. However, such a movement could redefine the role of digital assets in US economic strategy. It reflects a broader ideological change, treating digital assets as national economic tools.

Crypto advocates responded enthusiastically. The Crypto Rover influencer called Bitcoin’s acquisition plan based on “optimistic mega,” reflecting the broader feeling on the market.

However, some experts warn that policy may have adverse effects. Charles Hoskinson, founder of Cardano, questioned the effectiveness of tariffs, warning that future government taxes on crypto will be ineffective.

Meanwhile, experts warn that Trump’s aggressive attitude towards tariffs may compromise US leadership in Bitcoin mining. Increasing hardware costs and new international trade barriers can negatively affect domestic miners, especially if China’s equipment is the target of additional tariffs or more severe restrictions.

Despite these complexities, the administration does not seem to be shaken. Hines also suggested the integration of Stablecoins and Blockchain technology legislation into bank infrastructure. He said this would strengthen The capabilities of law enforcement in crypto and would signal a multifaceted strategy.

Hines comments arise amidst broader financial changes. Reports suggest that the Trump administration is CONSIDERING REPLACEMENT Federal Reserve President Jerome Powell.

With inflationary pressures increasing and commercial tensions with China climbing, it is speculated that a more favorable Crypto Fed president could align monetary policy with the goals of administration’s digital assets.

With rising geopolitical tensions and central banks running to define their digital currency strategies, the US seem to be moving toward a more assertive position.

Beincrypto data show that Bitcoin was being negotiated for $ 85,465 until the publication of this text. This represents a modest increase of 1.09% in the last 24 hours.