- Trump could make Bitcoin a US reserve currency if re-elected, boosting its value and the US’s crypto leadership.
- The US holds 200,000 BTC, and transferring this to the Treasury under Trump could surge Bitcoin’s price.
- Adopting Bitcoin as a reserve currency enhances US financial stability and transparency, countering inflation and mismanagement.
The possible importance of Bitcoin to the US government in the upcoming years is a subject of increasing speculation. After this year’s US election, former President Donald Trump is considering a run for the presidency again, therefore the country’s cryptocurrency is quite interesting.
Trump, who has dubbed himself the first “crypto president” if re-elected, supports Bitcoin (BTC). CNBC analysts suggest that a Trump-led administration might even consider holding Bitcoin as a reserve currency.
Trump’s Bitcoin Vision
CNBC Bitcoin analysts suggest that while it may be a challenging task, a Trump-led US Government can begin holding BTC in reserve. Speculation has been rife for months that this could happen if Trump is elected, given the US is the largest holder of BTC globally.
The US Justice Department holds around 200,000 Bitcoin, worth $13 billion at press time. However, if Bitcoin is transferred to the Department of Treasury instead of being sold occasionally, it could hold billions worth of the top cryptocurrency, causing a price surge.
Donald Trump has been predicted by insiders to announce a plan for Bitcoin as a US reserve asset. In a post to X (formerly Twitter), Simon Dixon shared rumours leading up to the Bitcoin Conference 2024. Such a move would be monumental for crypto and BTC.
Throughout his re-election campaign, Trump has expressed his support for cryptocurrencies, noting to Bloomberg that the asset class is “not going away.” Moreover, he emphasized that the US must become a global crypto leader.
Challenges and Opportunities
Becoming a reserve currency with Bitcoin would not be easy. Liquidity is a major worry first. With over $7.2 trillion in reserves, the US dollar is the most liquid currency globally.
A much larger market capitalization and degree of liquidity would be necessary for Bitcoin to replace the dollar as the world’s reserve currency.
A favorable regulatory environment is also essential. Capital controls and other restrictive measures must be avoided by policymakers as they could undermine trust in the US financial system.
Bitcoin’s decentralized network reduces the likelihood of bad governance and corruption. If America adopted Bitcoin as a reserve currency, its financial system would become more open and decentralized.
For the average American, Bitcoin offers protection from inflation and poor government policy. Additionally, younger Americans can find stability in Bitcoin as a store of value if they are facing long-term national debt. Therefore, Bitcoin offers the US a strategic economic advantage in competition with China and other centralized financial structures.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
