The author warns against President Trump's flirtation with making cryptocurrency part of the US strategic reserve, arguing that it undermines the global status of the US dollar and poses a grave risk to the US economy. While acknowledging the potential benefits of blockchain technology, the author expresses concern about the implications of equating crypto with the dollar, potentially deterring foreign investment in US debt and jeopardizing the nation's fiscal stability.
The hand-wringing taking place over some of President Trump’s Cabinet picks would be laughable were it not for what the opposition is missing: Team Trump’s flirtation with something much more dangerous in making crypto part of the nation’s so-called strategic reserve. — inside the vaults of places like Fort Knox, the US government is sending a message to the world: An alternative asset is as safe as the US dollar.
For starters, we still live in a country addicted to debt that we need foreigners to buy and they are willing to do so for many reasons, including the US is a great safe haven with a stable “reserve” currency. It won’t happen overnight, which means we still need access to the borrowing markets that this idiotic crypto reserve talk could make exponentially more difficult. Oil for obvious reasons, and gold, of course.
A bitcoin reserve literally conveys credibility to a currency that is competing with the dollar for reserve currency status — international transactions are made in dollars which means people need to hold them in some form. Trump courted crypto honchos during the 2024 campaign and promised to deregulate their business that came under assault from the Biden administration.As he has talked up hoarding bitcoin in a reserve, its price has soared over 130% during the past year to above $100,000.
Politics Cryptocurrency CRYPTOCURRENCY US DOLLAR ECONOMIC RISK FEDERAL RESERVE GLOBAL FINANCE
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