Crypto-advocates are lauding the US government’s digital ‘Fort Knox’ as the start of a new era — and possibly the end — of government-backed paper money.
On Thursday, US president Donald Trump signed an executive order establishing a US Strategic Bitcoin Reserve, the first of its kind in the world, and will convene a crypto summit at the White House on Friday to discuss how it should be managed.
Advocates say it mark a historic shift in government policy toward digital assets, granting Bitcoin an unprecedented level of legitimacy that marks the first step toward making cryptocurrency a bona fide asset class akin to gold, or even the US dollar.
Critics argue that it lacks the congressional approval necessary to function as a true monetary reserve and opens the public purse to abuse and scams. That’s especially so, given that all of the US government’s Bitcoin is gained from criminal forfeiture cases.
Adam O’Brien, the founder and CEO of Calgary-based Bitcoin Well, argues the opposite. It means the US government “just promised not to sell the Bitcoin they stole” which will have the effect of making it more transparent and less subject to abuse.
“Who is going to argue against the legitimacy of Bitcoin now?” He said in an interview. “Now it (Bitcoin) is the same asset class as gold. (Trump’s order) just levelled up its legitimacy and intrinsic value.”
While the US government will retain other cryptocurrencies in a separate ‘Digital Asset Stockpile,’ as per the order, only Bitcoin will be treated as a strategic reserve asset.
“This is a digital Fort Knox,” said Treasury Secretary Scott Bessent, emphasizing Bitcoin’s role as a long-term store of value. However, the reserve will not function like a traditional monetary reserve fund, which would require congressional legislation.
O’Brien also noted that there’s no mechanism for the government to buy Bitcoin at this point, which limits its functionality but also prevents volatile speculation. When Germany liquidated its holdings, the price crashed costing its citizens billions.
But without clear guidelines, he agreed it’s uncertain how much further the US will go in expanding its holdings beyond seized assets. But it should also make the market more stable, he added.
Critics also warn that Trump’s broader embrace of cryptocurrency could open the door to financial manipulation. The president’s personal involvement in launching meme coins — such as the “TRUMP” and “MELANIA” tokens — has raised ethical concerns.
Trump and his family have also backed World Liberty Financial, a crypto venture, and his media company has earmarked up to $250 million for crypto investments. Meanwhile, the SEC has dropped multiple enforcement cases against major cryptocurrency firms since Trump took office.
O’Brien agreed that so-called ‘meme tokens’ are more of an exercise in vanity than value creation, ‘TRUMP-coin’ included. “It’s a dumb decision from a brand and trust perspective,” he said.
But he said it’s now inevitable that other countries, including Canada, will begin setting up their own Bitcoin reserves or risk being left behind.
With the U.S.-Mexico-Canada Agreement (USMCA) up for renegotiation in 2026, the role of digital assets in trade and finance could become a key issue in any future talks — or lack thereof.
But for now, Trump’s “digital Fort Knox” is a symbolic step toward government-backed cryptocurrency reserves. Whether it becomes a lasting pillar of US financial strategy or a short-lived experiment will depend on the political and economic landscape in the years ahead.
Boosters like O’Brien see it as a longer-term play marking “the largest transfer of wealth and power in history.”
“Let’s go, guys,” he said he would tell the Canadian government. “It’s inevitable for other countries to follow… every country will be needing to adopt a Bitcoin reserve or be left behind.”
“It’s a binary choice.”