The debate over Bitcoin as a government reserve is gaining new momentum after a senior adviser to the US president hinted at a possible breakthrough.
• US President Donald Trump wants to create a state Bitcoin reserve
• After initial delays, there now seems to be progress
• Former Fed chief Janet Yellen warns of possible hyperinflation in the USA
Last year, US President Donald Trump signed an order regarding the creation of a strategic Bitcoin reserve. Since then, the government has been working on the necessary measures and legal interpretations to implement this. According to reports, the reserve will initially consist of the approximately 200,000 Bitcoin that the state is holding from confiscations.
Advertising
Over 650+ cryptos and 3,000 digital assets
Bitpanda is the BaFin-licensed crypto broker from Austria and the official crypto partner of FC Bayern Munich. Create your account in just a few clicks and benefit from 0% deposit and withdrawal fees.
However, the practical implementation has so far fallen short of expectations. Little progress has been reported since the order was issued, which raised doubts about its actual implementation.
Bitcoin reserve breakthrough suggested
But now the topic is moving. The White House’s top crypto advisor announced a “big announcement” for the next few weeks. “I think we’ve made a bit of a breakthrough here, and of course that needs to be followed by legislation,” Patrick Witt, head of the Digital Assets Advisory Board, said during a panel discussion at the Bitcoin 2026 conference in Las Vegas, according to Forbes. “In the meantime, we believe we can take a big step forward from the executive branch.”
Congress is currently working on a legal basis. According to Forbes, Republican Representative Nick Begich presented a revised bill elsewhere in the conference that is intended to further secure the creation of a strategic Bitcoin reserve. His draft therefore stipulates that the US government could acquire up to one million Bitcoin over five years – through budget-neutral measures.
Macroeconomic Pressures: Shocking Hyperinflation Warning
This news comes at a time of heightened macroeconomic uncertainty. In mid-April, former Fed Chair Janet Yellen warned that Donald Trump could push the US dollar toward “hyperinflation” – a situation that some market participants believe could cause the price of Bitcoin to skyrocket.
The background is the political pressure on the US Federal Reserve to lower interest rates in order to keep the high national debt sustainable. “That’s the kind of thing you hear in a banana republic,” Yellen said, according to a Financial Times report quoted by Forbes. She also said she had “never seen a threat of this magnitude to the Fed before,” and warned that political interference in monetary policy could lead to “hyperinflation.”
Classification: What does this mean for private investors?
The signals from Washington point to a possible structural appreciation of Bitcoin – away from a speculative asset and towards a government-recognized reserve instrument. If the US government actually legitimizes Bitcoin politically, this could further strengthen institutional acceptance. In addition, government purchases – as outlined in the draft law – would tighten the supply side.
However, private investors should also note that implementation is not yet complete and depends largely on legislation. Anyone who is invested or is considering investing should therefore keep an eye on political developments in the USA as well as macroeconomic signals – especially with regard to inflation and monetary policy.
Thomas Zoller, editorial team at finanzen.net
