Exploring the Future: AI and Crypto in Sovereign Wealth Funds

President Trump signed an executive order to create a sovereign wealth fund for the United States of America on the 3rd of February 2025. Image Source: Screenshot

On February 3rd, 2025, President Trump took a significant step by signing an executive order. This order directed the Treasury and Commerce departments to explore the creation of a sovereign wealth fund.  

Sovereign-wealth funds are government-owned investment funds that manage national savings to benefit the economy. The discussion around this fund raises an intriguing question: Could artificial intelligence (AI) and utility-driven cryptocurrencies play a role in Sovereign Wealth Funds? 

Artificial intelligence (AI) has the potential to analyze vast amounts of data, helping to identify profitable investment opportunities and optimize returns. On the other hand, cryptocurrencies with practical applications can diversify the fund's portfolio and promote innovation. 

On the 4th Febuary 2025, David Sacks, the Crypto Czar, discussed stablecoins with the US Senate. ‘‘He emphasized their potential to enhance US dollar dominance, foster domestic value creation, improve consumer protection, and reduce long-term interest rates during the Senate discussion’’.

As the government considers these options, integrating AI and cryptocurrency could redefine how sovereign wealth funds operate, potentially leading to increased economic stability and growth for the nation.