As of March 12, the U.S. government holds 195,234 Bitcoin, valued at over $16 billion, according to a recent report.
The government’s cryptocurrency portfolio also consists of $4.6 million worth of Ethereum (ETH), along with stablecoins such as USDC and yield-bearing assets like DAI and AUSDC_V2.
In a bold move, Rep. Nick Begich has introduced the House Strategic Bitcoin Bill, which aims to acquire 1 million BTC over the next five years, potentially representing nearly 5% of Bitcoin’s total supply. If enacted, the estimated dollar value of these acquisitions at current market prices would approach $110 billion.
Market Implications
If the bill is successful, the U.S. government’s Bitcoin holdings would exceed the estimated 1.1 million BTC believed to belong to Bitcoin’s enigmatic creator, Satoshi Nakamoto. This extensive ownership could grant the government considerable influence over market liquidity and price stability, possibly elevating Bitcoin’s value and altering market dynamics.
However, this significant level of ownership raises questions about the centralization of a cryptocurrency that was designed to be decentralized. Large-scale government acquisitions could position the government as a price setter in the Bitcoin market, which may contradict the fundamental principles of cryptocurrency.
