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Indian Express
28-05-2025
- Business
- Indian Express
C Raja Mohan: In India, needed, a crypto strategy
As India tries to understand the second Trump administration's unexpected enthusiasm for renewing ties with Pakistan, an unusual development is drawing global attention: An ambitious — and somewhat surreal — cryptocurrency collaboration between Pakistan and World Liberty Financial Inc (WLFI), a firm tied to the Trump family. WLFI, reportedly run by Donald Trump's children and Zack Witkoff — the son of Trump's special envoy Steve Witkoff — signed a memorandum of understanding (MoU) last month with the Pakistan Crypto Council, formed in March. The WLFI delegation was warmly received in Islamabad and Lahore, with meetings involving both PM Shehbaz Sharif and Army Chief Asim Munir. The MoU outlines sweeping plans to use blockchain technology to promote financial inclusion, monetise untapped national assets such as rare earths, introduce stablecoins for remittances and trade, and position Pakistan as a regional crypto hub. The viability of these plans remains uncertain, given the parlous state of Pakistan's economy. But India should pay close attention to Pakistan's crypto ambitions — especially amid the possible misuse of these digital currencies not controlled by any central bank to fund terror and launder money across borders. Far more consequential, however, is the potential transformation of the global financial order triggered by the Trump administration's new crypto policy. Cryptocurrencies, once dismissed as a financial fad, have now become disruptive instruments in global finance. Their decentralised architecture, rapid innovation, and increasing adoption are reshaping monetary policy, regulatory frameworks, and cross-border economic flows. In his second term, Trump has moved swiftly to reposition the US as a global leader in digital assets. During his campaign, Trump reversed his earlier scepticism of crypto and promised to dismantle the Biden-era hostility toward the sector. The crypto industry, sensing a huge opportunity, rallied behind him. Within days of assuming office, Trump issued two executive orders that reshaped America's crypto strategy. The first order codified a national blockchain innovation strategy, curtailed regulatory overreach, and banned the development of a central bank digital currency (CBDC). It also formed the President's Working Group on Digital Asset Markets, chaired by the White House's 'AI and crypto czar', David Sacks, to design a new regulatory framework within six months. The second order created a Strategic Bitcoin Reserve and a US Digital Asset Stockpile to consolidate government-seized crypto assets such as Bitcoin, Ethereum, and Solana. This initiative aimed to turn digital assets into national reserves akin to gold, without tapping into taxpayer funds. In supporting lawful, dollar-backed stablecoins while explicitly banning CBDCs, Trump seeks to ensure sustained dominance of the US dollar in the international system. Trump's appointments — including pro-crypto figures like Elon Musk and Sacks — signal a major shift in Washington. The Securities and Exchange Commission paused its lawsuits against major exchanges like Coinbase and Binance, while the Justice Department dissolved its crypto enforcement team. Markets responded with enthusiasm: Bitcoin surged past $74,000 in March 2025 and is valued this week at more than $100,000. Adding a personal twist to his crypto strategy, Trump also launched a meme coin —$TRUMP— turning himself into a direct stakeholder in the crypto surge. Meanwhile, WLFI is reaching out to many countries, including Pakistan, for deals on crypto. Until recently, Pakistan showed little interest in cryptocurrencies, having banned or restricted them like India. But that has changed dramatically. In early 2025, the government appointed a young British Pakistani entrepreneur Bilal bin Saqib to lead the Pakistan Crypto Council. This week, Saqib was appointed special adviser to Pakistan's Prime Minister and tasked with creating a regulatory framework to promote crypto adoption. Estimates suggest Pakistan may have up to 25 million crypto users and a market worth $2 billion. Even with a stagnant economy, an underdeveloped financial sector, and limited technological capabilities, Pakistan appears determined to carve out a niche in the emerging crypto world. The strategy includes cultivating its diaspora in the US, particularly tech entrepreneurs who now serve as a conduit to the Trump administration. At a recent diaspora convention — Pakistan's first, modelled after India's Pravasi Bharatiya Divas — Munir reaffirmed the ideological foundations of Pakistan's statehood and signalled a reassertion of influence abroad. While the Indian diaspora's tech influence is well known, Pakistan's diaspora is now making moves of its own — leveraging crypto to rekindle Pakistan's ties with the US, which had frayed under both the Trump and Biden administrations. India should not dismiss these developments as inconsequential. In the 1970s, Delhi underestimated Pakistan's nuclear ambitions, assuming it lacked the scientific and technological base. By the late 1980s, Pakistan had developed nuclear weapons and leveraged them to create a challenging security environment for India. More urgently, India needs to reflect on its own crypto strategy — or the lack of it. There has been little public discourse on the geopolitical and technological implications of crypto. This lack of government engagement contrasts with the growing number of crypto users in India, estimated to be more than 100 million, and a market size of nearly $7 billion. Earlier this month, the Supreme Court stepped into this breach. In hearing the bail petition of Shailesh Bhatt, a Gujarat resident accused of cryptocurrency fraud, the Court remarked on the Centre's paradoxical policy of taxing crypto assets without developing a regulatory framework. It warned that the legal and policy vacuum on cryptocurrencies would create serious challenges to India's economy and security. India no longer has the luxury of ignoring the changing regional and global crypto landscape. Delhi needs to come to terms with Pakistan's new digital pivot and Trump's plans to refashion the global financial order with crypto and related technologies. (The writer is a distinguished fellow at the Council on Strategic and Defence Research and a contributing editor on international affairs for The Indian Express)
Al Etihad
11-03-2025
- Business
- Al Etihad
US President Trump signs order to establish strategic bitcoin reserve
7 Mar 2025 15:55 WASHINGTON (Reuters) US President Donald Trump has signed an executive order to establish a strategic reserve of cryptocurrencies by using tokens already owned by the government, disappointing some in the market who had hoped for a firm plan to buy new announcement, made on Thursday ahead of a meeting with crypto executives at the White House later on Friday, sent the price of bitcoin down by around 5% to $85,000. In early European trading on Friday, bitcoin has recovered to trade at $89,200.A "Strategic Bitcoin Reserve" will be capitalized with bitcoin owned by the federal government that was seized as part of criminal or civil asset forfeiture proceedings, the White House crypto czar, billionaire David Sacks, said in a post on social media platform order kept open the possibility of the government buying bitcoin in future. The US commerce and treasury secretaries "are authorised to develop budget-neutral strategies for acquiring additional bitcoin, provided that those strategies impose no incremental costs on American taxpayers," a factsheet on the White House website said."The significance of this executive order is mainly symbolic, as it marks the first time Bitcoin is formally recognized as a reserve asset of the United States government," said Andrew O'Neill, digital assets managing director at S&P Global promise of a strategic reserve and expectations for easier industry regulation had seen the token surge to an all-time high at $109,071.86 in to the bitcoin reserve, there will also be a "US Digital Asset Stockpile", consisting of tokens other than bitcoin, but the government will not add to the stockpile "beyond those obtained through forfeiture proceedings", Sacks this week named five digital assets he expected to include in a government reserve, spiking the market value of each. The five are bitcoin, ether, XRP, solana and cardano. CRYPTO INDUSTRY SUPPORT Attendees at Friday's White House crypto summit expect the event to serve as a stage for Trump to formally announce his is not clear how such a reserve would work or how it would benefit taxpayers. Sacks said the federal government will have a strategy to maximize the value of its holdings in such a reserve, without offering details."The US will not sell any bitcoin deposited into the Reserve. It will be kept as a store of value. The Reserve is like a digital Fort Knox for the cryptocurrency often called 'digital gold'," Sacks argue that a reserve would help taxpayers benefit from crypto's price estimated the US government owns about 200,000 bitcoin and the premature sale of the cryptocurrency has cost the American taxpayer $17 billion. It was not clear how Sacks arrived at these president's support for the crypto industry has also sparked conflict-of-interest concerns. Trump's family has launched cryptocurrency meme coins, and the president also holds a stake in World Liberty Financial, a crypto platform. His aides have said Trump has handed over control of his business ventures, which are being reviewed by outside ethics lawyers.
Express Tribune
08-03-2025
- Business
- Express Tribune
Trump signs executive order, holds Bitcoin as a reserve asset
Listen to article US President Donald Trump has signed an executive order to establish a strategic reserve of cryptocurrencies, using tokens already owned by the government, disappointing some market participants who had hoped for the purchase of new tokens. The announcement, made ahead of a meeting with crypto executives on Friday, caused bitcoin's price to drop by 5% to $85,000, although it later recovered to $89,200 in early European trading. The "Strategic Bitcoin Reserve" will be capitalized with bitcoin seized through criminal or civil asset forfeiture proceedings, according to White House crypto czar David Sacks. The order also leaves open the possibility for the government to buy additional bitcoin in the future, with US commerce and treasury secretaries authorized to develop budget-neutral strategies to acquire more, provided they don't add extra costs for American taxpayers. Andrew O'Neill, digital assets managing director at S&P Global Ratings, noted that while the order symbolizes Bitcoin's formal recognition as a reserve asset, it "marks the first time Bitcoin is formally recognized as a reserve asset of the United States government," but the reserve will only include bitcoin already owned by the US government. He added there was no indication of how much or when additional bitcoin might be acquired. Trump's earlier promises of a strategic reserve and industry-friendly regulation had led to a surge in bitcoin's value, reaching a record high of $109,071.86 in January. However, some, like Charles Edwards, founder of Capriole Investments, expressed disappointment, calling the announcement "just a fancy title for Bitcoin holdings that already existed with the government." Alongside the Bitcoin Reserve, the US will also create a "US Digital Asset Stockpile," which will include tokens other than bitcoin but will not be added to beyond those obtained through forfeiture. At the same time, Trump named five digital assets—bitcoin, ether, XRP, solana, and cardano—as candidates for inclusion in the government reserve, causing a surge in the market value of these tokens. However, attendees at the White House crypto summit on Friday still expect Trump to formalize his plans. Sacks also outlined that the reserve would not involve selling the bitcoin but would treat it as a store of value, similar to a "digital Fort Knox" for cryptocurrency. Despite some controversy, proponents of the reserve argue it would allow taxpayers to benefit from crypto's price growth. The US government is estimated to own about 200,000 bitcoin, with Sacks suggesting that the premature sale of the cryptocurrency has cost American taxpayers $17 billion. However, the basis for this estimate remains unclear. Trump's crypto support has also raised concerns due to his family's involvement in launching meme coins and his stake in a crypto platform, although aides have said he has handed over control of his business ventures to outside ethics lawyers.
Times of Oman
08-03-2025
- Business
- Times of Oman
Trump says working to end US government "war on Crypto"
Washington DC: Following the decision to create a 'Strategic Bitcoin Reserve', United States President Donald Trump said that he's working to end the government's "war on crypto" Addressing the Crypto Summit at the White House, Donald Trump heavily criticised former President Joe Biden's stringent actions against cryptocurrencies such as Bitcoin and expressed a more welcoming approach by his administration. "My administration is working to end the federal bureaucracies' war on crypto which was really going pretty wildly during Biden until the election came about. 5 months before the elections he became a big fan because he heard how many people love it and respect it but i guess it didn't work out for him." Speaking about the signing of the executive order to form a 'Strategic Bitcoin Reserve' on Thursday, Trump informed that the federal government is the "largest" holder of Bitcoin in the US. "Last year, I promised to make America the Bitcoin superpower of the world and the crypto capital of the planet, and we're taking historic action to deliver on that promise. Yesterday, I signed an executive order officially creating our strategic Bitcoin reserve." The federal government is already amongst the largest holder of Bitcoin, one of the largest holders in the world. These existing holdings formed the foundation of the new reserve." Trump said. Trump further called the Biden administration's decision to sell Bitcoins "foolish." "Unfortunately, in recent years, the US government has foolishly sold tens of thousands of additional Bitcoin that was worth billions and billions of dollars had they not sold them, but they did sell them, mostly during the Biden administration," Trump said. Trump said that he has directed the Treasury and Commerce Department to explore new pathways to accumulating Bitcoins without burdening taxpayers. "The Treasury and Commerce Department will also explore new pathways to accumulate additional Bitcoin holding for the reserve provided its done at the no cost the tax payers. We don't want any cost to the taxpayers. In addition, my order directs federal agencies to conduct an inventory of all crypto assets currently held by the US government and determine how they can be transformed to the treasury." Trump said. Along with Strategic Bitcoin Reserve, the executive order also created a US Digital Asset Stockpile under the Treasury Department to manage other coins and assets, CNN reported.
South China Morning Post
07-03-2025
- Business
- South China Morning Post
Trump wants the US to be the world's crypto capital. Will China take notice?
US President Donald Trump's creation of a cryptocurrency reserve shortly before headlining a White House summit on the popular digital asset will get global attention if the reserve grows big enough to affect trading or market prices, but China already has safeguards against any potential impact, analysts said. Advertisement On Thursday, Trump signed an executive order to establish a 'Strategic Bitcoin Reserve' and 'US Digital Asset Stockpile' to 'maximise its strategic position' with assets already held by federal government offices. The president will also speak at the first White House Crypto Summit, to be chaired by his crypto tsar David Sacks for an audience of CEOs and investors, at which more details about the reserve are expected to be revealed. As of late Friday afternoon, the price of bitcoin had fallen about 5 per cent from an early-morning high on Thursday. The White House had just announced that its reserve will be capitalised with units of the cryptocurrency owned by the US Department of Treasury after being forfeited as part of criminal or civil proceedings. 'The US is the leading market for crypto assets (and) will get bigger,' said Winston Ma, an adjunct professor on the digital economy at New York University. He said a large enough cryptocurrency reserve could augment the US dollar's status as a global currency for trade among third countries. Advertisement
