The cryptocurrency market has been abuzz in recent days following US President Donald Trump’s historic announcement of establishing a national cryptocurrency reserve. This move not only caused the price of Bitcoin and the four other cryptocurrencies mentioned by Mr. Trump to skyrocket again, but also made investors ask: Who is behind this bold plan?

More than once, Mr. Trump has been joined on stage by Elon Musk, a vocal proponent of cryptocurrency and a symbol of innovation. These two powerful figures, whose influence extends far beyond national borders, could have a major impact in catalyzing a financial revolution the likes of which the world has never seen.

Elon Musk - the man behind Trump's cryptocurrency strategy?

Although both US President Donald Trump and tech billionaire Elon Musk are now strong supporters of cryptocurrencies, their thinking was initially at odds.

During his first term (2017-2021), Mr. Trump expressed doubts about cryptocurrencies, calling Bitcoin a “fraud” and affecting the value of the USD. However, his stance changed significantly during the 2024 election campaign, accepting cryptocurrency donations for his campaign and declaring himself a “crypto-friendly” candidate.

Mr. Trump has promised to boost the industry if elected, including removing restrictive regulations and keeping all Bitcoin held by the US government.

The shift coincided with Trump receiving strong support from Elon Musk, who has spent more than $200 million through a Super PAC to support his re-election.

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Mr. Donald Trump and Elon Musk. Photo: BTA

Meanwhile, Elon Musk has long been no stranger to the cryptocurrency investment world. From tweets that shook the Bitcoin market to electric carmaker Tesla hoarding billions of dollars in cryptocurrency in 2021, Elon Musk has proven that he is not only an investor but also a pioneer in bringing cryptocurrency to business practice.

The crossover between Elon Musk and Mr. Trump in the cryptocurrency field became more evident after Mr. Trump won the election in November 2024.

Trump appointed Musk as co-head of the “Department of Government Efficiency,” an outside government advisory body whose name coincides with Musk’s favorite cryptocurrency, Dogecoin. This triggered a massive price surge for Dogecoin, which more than doubled in value after Trump’s victory, reflecting market expectations that Musk could influence cryptocurrency policy under the Trump administration.

So when Trump announced his plans for a cryptocurrency reserve that would include Bitcoin, Ethereum, and other major coins, many people couldn’t help but think of Musk’s influence. It’s no coincidence that just hours after Trump’s announcement, billionaire Musk tweeted about Dogecoin.

Promises to change the global financial balance

Strategically, Musk could be an informal adviser to Trump in crafting the plan. During the 2024 campaign, Trump repeatedly mentioned the need for the US to lead in blockchain technology, a sentiment that echoes what Elon Musk has said at technology conferences.

If Elon Musk is indeed involved in shaping the cryptocurrency reserve, his role will be more than just advice, but also a bridge between the Trump administration and the tech-crypto community.

Another indication of Elon Musk’s influence is the way Trump referred to Bitcoin as “digital gold” in his speech. The term is reminiscent of Elon Musk’s comparisons of Bitcoin to gold, demonstrating its scarcity and intrinsic value.

If Elon Musk is really behind this idea, he could be pushing a long-term strategy: making cryptocurrency not just a national reserve asset for the United States, but a global standard. With his experience running Tesla and SpaceX, Elon Musk understands how to use technology to disrupt traditional industries. This time, finance could be the next target.

By adding digital currency to the US national reserve, Mr Trump – with the support of Elon Musk – could make the US the centre of both worlds: traditional finance and decentralized finance.

With hundreds of thousands of Bitcoins in stock, the US could push major companies like Tesla to accept cryptocurrencies in international transactions. This would not only increase the value of cryptocurrencies but also create a new financial ecosystem where the US dollar and Bitcoin coexist as instruments of power.

With Elon Musk’s influence in the tech industry, companies like SpaceX and xAI could pioneer the development of blockchain infrastructure to support the US reserve, setting a global standard. If successful, this alliance could undermine the position of rival financial systems like China’s e-CNY digital currency, forcing other countries to follow the US model.

Still, there are plenty of risks. The volatility of cryptocurrencies could shake confidence in the U.S. reserve if Bitcoin prices plunge. And geopolitical rivals like China and Russia could accelerate plans to develop their own national cryptocurrencies, leading to a new financial war.

Trump 'ignites' cryptocurrency craze, historic breakthrough or risky gamble? The cryptocurrency market exploded after US President Donald Trump announced plans to establish a national digital currency reserve, marking a potential turning point in the world's financial history. However, the road has not been smooth.