Presidential candidate Robert F. Kennedy Jr. has promised that if elected, he will sign an executive order on his first day in office designating Bitcoin as a strategic reserve asset of the United States.
Kennedy spoke to attendees at the Bitcoin 2024 conference on July 26, outlining his vision for Bitcoin to play a key role in strengthening America's economic stability and strategic position. This was his second time attending the event, making him one of the longest-standing advocates of the flagship cryptocurrency among U.S. political leaders.
In addition to building a significant Bitcoin reserve, Kennedy has pledged to issue an executive order making Bitcoin-to-US Dollar transactions non-reportable and tax-free, and he also plans to allow Bitcoin as a qualifying asset for 1031 exchanges into real estate.
Strategic Reserve
Kennedy said that on the first day the executive order goes into effect, he will instruct the Department of Justice and U.S. Marshals to transfer approximately 200,000 bitcoin currently held by the U.S. government to the Treasury Department as strategic assets.
He will also instruct the Treasury Department to purchase 550 Bitcoin per day until the U.S. has accumulated a reserve of 4 million Bitcoin, which represents just under 20% of the total supply.
“This policy would give our country roughly the same percentage of Bitcoin as the world's gold reserves.”
Kennedy's plan also includes backing U.S. Treasury bonds with real assets such as Bitcoin in order to stabilize the U.S. dollar and keep inflation in check. He believes that Bitcoin's scarcity and liquidity, along with gold and other real assets, can restore the U.S. dollar's dominance in global finance.
He also criticized the Federal Reserve's monetary policies for contributing to wealth inequality and economic instability, arguing that backing the US dollar with real assets such as Bitcoin would act as a hedge against inflation and strengthen the value of the US dollar.
Kennedy also addressed the international implications of current U.S. monetary policy, noting that the weaponization of the dollar against other countries, such as by excluding them from the SWIFT system, is accelerating efforts by countries such as the BRICS nations to de-dollarize.
He warned that if the United States does not move to a more sustainable financial strategy backed by real assets, it risks losing its economic leadership and the dollar's status as a reserve currency.
Corruption's “biggest enemy”
Kennedy also emphasized Bitcoin's role in protecting individual freedoms. He spoke about how the Canadian truck drivers' protests and the freezing of their financial assets influenced his advocacy for Bitcoin and made him realize the importance of economic freedom.
He said:
“I realized that freedom of trade is just as important as the First Amendment's freedom of expression.”
He also highlighted Bitcoin's potential to protect individual freedoms, promote accountability, and fight government corruption, stating:
“Bitcoin is anti-war. It is a fierce, relentless, and invincible enemy of government corruption.”
Kennedy's plan also includes backing U.S. Treasury bonds with hard assets such as Bitcoin in order to stabilize the US dollar and tame inflation: “My proposed strategy would leverage the scarcity and liquidity of Bitcoin, along with gold and other hard assets, to restore the US dollar's dominance in global finance.”
Political support
Kennedy expressed optimism about growing political support for Bitcoin and aims to position the United States as a global hub for cryptocurrency innovation and investment. He also acknowledged that former President Donald Trump has recently been a vocal supporter of Bitcoin, saying the growing interest among political leaders is a good thing.
Kennedy revealed that President Trump may announce plans to build a “Bitcoin Fort Knox” in an upcoming address to the Congress and authorize the U.S. government to purchase 1 million Bitcoin as a strategic reserve asset.
Kennedy expressed support for the potential move, hoping that President Trump's commitment to Bitcoin goes beyond “political expediency.” He noted that the most cynical political reason to support Bitcoin is to excite the 60 million American bitcoin holders with policies that will increase the value of the cryptocurrency.
But Kennedy hopes that President Trump and other political leaders will develop a deeper understanding of bitcoin's potential to keep the U.S. financial system safe and secure from cyber threats.
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