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Yesterday, Trump began the procedure that should lead to the creation of an American sovereign box, which could buy bitcoin.

Trump’s sovereign fund: Bitcoin can be purchased

At the present time, Donald Trump restricted himself the signature Executive order stipulates the creation of a sovereign fund in the United States of America.

The sovereign fund is a public investment tool owned by a country.

Sovereign funds are usually created to manage budget surpluses, currency reserves, or natural resource returns, with the aim of generating long -term returns to the country.

Once created, they invest in a variety of assets, such as stocks, bonds, real estate, or commodities, with the aim of increasing the returns to the maximum extent while adhering to their mandates. It is usually managed to teams of experts.

At the present time, sovereign funds have become important players in the global financial scene, with a total wealth of several thousand billions of dollars, to the extent that their investment decisions sometimes can have significant impacts on financial markets and the global economy.

Will Bitcoin be included in the Trump sovereign box?

Although the US sovereign fund was not established Bitcoin.

The truth is that Trump promised during the election campaign to create a strategic reserve in BTC For the United States of America, the sovereign box can be an ideal tool to do so.

As of today, there are already sovereign money investing in Bitcoin, although only indirectly. Certainly, there is Al Salvador who buys and accumulates BTC directly, but sovereign money is also exposed in Norway and Batuan, even if investing in the Norwegian fund is in the case of the Norwegian Fund. Microstrategy The stocks, while in the case of the Asian country, BTC was assembled through mining.

Therefore, it is not absolutely tampering to imagine that as soon as it is established, the American Sovereignty Fund can decide to buy bitcoin.

Goals

In general, the goals of the sovereign fund are to fix revenues, provide future generations, and strategic investments.

By installing revenues, we mean the use of sovereign funds to compensate for price fluctuations for goods that are exported in large quantities by some countries, such as oil, to ensure greater economic stability for the country that controls it.

Instead, with the provision of future generations, the goal is to collect wealth in the sovereign money portfolio for future generations, for example, to finance the retirement system or long -term development projects.

In the case of Bitcoin in the United States of America, it will be a strategic investment, even if it is usually for sovereign funds they are investments in the main sectors of the country’s economy, such as energy, infrastructure or technology.

In fact, Trump did not reveal what the real goal is to create a strategic reserve in BTC in the United States of America, and in light of the just description of the goals of a sovereign box, in the end, he may also choose a different tool for creating a bitcoin reserve.

Therefore, the hypothesis that the sovereign fund of the United States of America may not even invest in Bitcoin, leaving the strategic reserve in BTC to some other entity. However, it should be added that the central bank has already mentioned that it has not been made for this type of initiative, as of today, the sovereign fund appears to be the main hypothesis.

Doubts about the feasibility

The first doubt about the hypothesis that the sovereign fund is to create and manage the strategic BTC reserves for the United States of America comes from the fact that these funds often work at different levels of transparency and governance.

In fact, if some are subject to greater controls and reports, others are less than that, and there is a doubt that Trump may not be among the most transparent.

Moreover, in general, the use of sovereign funds for strategic investments can also lead to political and economic differences, such as the danger of government intervention in the free market.

But in the case specified for the United States of America, the main doubts vary.

The first is the possible direct participation of the government in the economy, to the extent that some predict that if a similar procedure is made by a democratic president, it is likely that Republicans are likely to accuse him of being a socialist. Instead, Republicans seem to agree with a similar procedure provided by their president Trump.

Another accusation is that the government can use a sovereign fund to reward political allies, or to pressure the opponents, as well as to increase the concentration of power on the narrow elite.

If the fund then has a little supervision, it will easily lend itself to corruption phenomena, and it will easily allow the creation of a few system in which the interests of the government and large companies are closely intertwined.