In a space on Bailey, who serves as one of Trump's closed bitcoin advisors, boldly claimed that multiple central banks globally are actively acquiring bitcoin.
Central banks are buying bitcoin
“David Bailey just claimed, without any evidence in Dylan LeClair's space with Matthew Pines, that central banks are buying bitcoin,” said Joe Carlasare, partner at Amundsen Davis LLC. In a follow-up post on x, Bailey specifically pointed to lesser-known global players like Bhutan and Venezuela, as well as Iran, as early adopters in the central banking space.
After Fred Krueger asked him which countries besides El Salvador, he responded x.com/DavidFBailey/status/1801824330764194013″ target=”_blank” rel=”noopener nofollow”>revealed: “Iran, Bhutan, Venezuela, no one super impressive. The big government buyers are the sovereign funds.” He predicted that the largest and most influential central banks would soon follow suit and acquire btc. “I think we will soon see the big central banks start to take positions.”
Mike Alfred, former technology CEO and founder of a value investment fund, x.com/mikealfred/status/1801820710572331058″ target=”_blank” rel=”noopener nofollow”>corroborated Bailey's claim, citing his direct communications with representatives of Bhutan, Burkina Faso and French Guyana. Alfred shared, “They are. Bhutan confirmed this to me on Tuesday. I have a call with Burkina Faso and French Guyana on Monday. “It’s happening, man.”
Commenting specifically on Bhutan, Bailey stated that “the situation in Bhutan is pretty wild” and shared an article from the Observer Research Foundation. Bhutan actively and knowingly participates in bitcoin mining. The country's sovereign investment arm, Druk Holding & Investments (DHI), in collaboration with Nasdaq-listed Bitdeer Technologies Group, is significantly expanding its bitcoin mining operations as of the latest update.
This strategic initiative aims to increase Bhutan's mining capacity to 600 megawatts by the first half of 2025, up from 100 megawatts currently. This expansion is part of a $500 million fund established to support these activities and is driven by the need to diversify Bhutan's economy, which relies heavily on hydropower.
Bailey also referenced a report from the Iranian Students News Agency from October 2020, which detailed Iran's regulatory strategy regarding bitcoin. The report described how the Iranian government had established regulations to direct bitcoin mined within the country to state coffers. This maneuver is part of a broader plan to use these assets to finance imports, showing a novel way to circumvent economic sanctions and stabilize national economic needs.
Trump HODL bitcoin?
Bailey's discussion also addressed the theoretical impacts of bitcoin adoption in the United States at the government level. He x.com/DavidFBailey/status/1801596615230177564″ target=”_blank” rel=”noopener nofollow”>floated a scenario in which former President Donald Trump could secure a substantial reserve of btc for the US Treasury, employing a temporary locking mechanism to protect these assets for future generations.
Bailey argues that this could offer a hedge against the instabilities of the traditional financial system and potentially elevate bitcoin to reserve status. “At a minimum, Trump should take the 210,000 bitcoin the United States already owns and lock those coins for 100 years. No future administrator will be able to undo the decision once time is blocked.”
The backstory could be one for Hollywood. “Think about the origin story. These coins would be from the Silk Road. Ross Ulbricht gives 1% of bitcoin supply to the United States. Trump blocks it for future generations and pardons Ross (Ulbricht). The Silk Road saves the United States. “I couldn't invent this plot,” Bailey said. x.com/DavidFBailey/status/1801792855314153631″ target=”_blank” rel=”noopener nofollow”>revealed that Trump is “aware” of the possibility that could completely change the world order.
At the time of publication, btc was trading at $66,211.
Featured image created with DALLE, TradingView.com chart
