American strategic bitcoin reserves (BTC), encryption stock “a pivotal moment” for industry: KBW

The Investment Bank said in a research report on Friday that President Trump’s executive order calls for the formation of the Bitcoin Strategic Reserve (BTC) and the encryption store is a “pivotal moment” for the industry.

The President directed his administration to create a Bitcoin strategic reserve To hold the assets that the government seized. He also called for a stock of other types of digital assets.

KBW noted that “the world’s largest great power has adopted many leading Blockchain protocols.”

The report said that Bitcoin is the real winner here, as it is dealt with exclusively as a backup asset. Any bitcoin and the government will also search for options to purchase more encrypted currency.

KBW estimates that the government has about 198,000 Bitcoin. And note that approximately 55 % of this stack will be returned to Bitfinex, leaving a balance of about 86,000 symbols.

No details have been provided on how the government plans to assemble Bitcoin, but it can sell some of 800 billion dollars in gold reserves to finance additional encryption purchases.

The bank said the BitBonds is another option. These are the treasury bonds that include Bitcoin “Kicker”, and can reduce borrowing costs for the government.

The report added that the government could form partnerships with miners in the United States to receive bitcoin royalties in exchange for tax exemptions or incentives.

Read more: Market experts weigh on TROMP strategic bitcoin reserve