Presidential candidate Robert F. Kennedy Jr. promised on his first day in office to sign an executive order if elected that would make Bitcoin a strategic reserve for the US.
Speaking at the Bitcoin2024 conference on July 26, Kennedy outlined a vision in which Bitcoin would play a key role in strengthening America’s economic stability and strategic position. This is his second appearance at the event, making him one of the longest supporters of the flagship crypto in US political leadership.
In addition to building a significant Bitcoin reserve, Kennedy promised to issue executive orders that would make Bitcoin transactions with the US dollar non-reportable and non-taxable. He also plans to recognize Bitcoin as an eligible asset for 1031 real estate exchanges.
Strategic reserve
Kennedy said that on day one, the Justice Department and U.S. Marshals would be ordered to transfer approximately 200,000 Bitcoin currently held by the U.S. government to the Treasury Department, designating it as a strategic asset.
It would also direct the Treasury Department to purchase 550 BTC daily until the US builds up a reserve of 4 million Bitcoin, which represents just under 20% of the total supply. Kennedy said:
“This policy will give us approximately the same share of total Bitcoin as our nation owns in global gold reserves.”
Kennedy’s plan includes supporting US debt with hard assets, including Bitcoin, to stabilize the dollar and control inflation. He believes that leveraging Bitcoin’s scarcity and liquidity, along with gold and other hard assets, will restore the dollar’s dominance in global finance.
He also criticized the Federal Reserve’s monetary policy, which he said has contributed to wealth inequality and economic instability. He argued that backing the US dollar with Bitcoin and other hard assets would provide protection against inflation and strengthen the dollar’s value.
Kennedy also discussed the international implications of current US monetary policy. He pointed out that weaponizing the dollar against other countries, for example by removing them from the SWIFT system, has accelerated efforts by countries such as those in the BRICS group to reduce de-dollarization.
He warned that unless the US moves to a more sustainable financial strategy backed by hard assets, it risks losing its economic leadership and the dollar’s reserve currency status.
Corruption ‘greatest enemy’
Kennedy also emphasized Bitcoin’s role in protecting individual freedom. He talked about how the Canadian truck drivers’ protest and the freezing of their financial assets influenced his advocacy for Bitcoin and made him realize the importance of financial freedom.
He said:
“I realized that transactional freedom was just as important as freedom of speech in the First Amendment.”
He also highlighted Bitcoin’s potential to protect personal freedoms, promote accountability and combat government corruption, saying:
“Bitcoin is anti-war. It is a fierce, ruthless and insurmountable enemy of government corruption.”
Kennedy’s plan includes supporting US debt with hard assets, including Bitcoin, to stabilize the dollar and control inflation. “The strategy I propose leverages the scarcity and liquidity of Bitcoin, along with gold and other hard assets, to restore the dollar’s dominance in global finance.”
Political support
Kennedy expressed optimism about growing political support for Bitcoin, with the aim of establishing the US as a global hub for crypto innovation and investment. He also acknowledged former President Donald Trump’s recent vocal support for Bitcoin and said the growing interest among political leaders was a good thing.
Kennedy revealed that during his upcoming speech at the conference, Trump could announce a plan to build a ‘Bitcoin Fort Knox’ and authorize the US government to purchase 1 million Bitcoin as a strategic reserve.
Kennedy expressed support for this possible move, hoping that Trump’s commitment to Bitcoin extends beyond “political opportunism.” He noted that the most cynical political reason for endorsing Bitcoin would be to incentivize the 60 million American Bitcoin holders with policies that increase Bitcoin’s value.
However, Kennedy hopes that Trump and other political leaders will develop a deeper understanding of Bitcoin’s potential to secure and protect the US financial system from cyber threats.