Trump sees Bitcoin as strategic reserve asset for the US, here’s why

It won’t be the first, and certainly not the last time that Donald Trump voices his support for Bitcoin. This time, he shares his preference for Bitcoin in a Forbes Report. And of course, this has led to discussions about the possibility of classifying cryptocurrencies as a strategic reserve asset for the United States. Trump acknowledged Bitcoin’s geopolitical significance in a social media post and warned against policies that would hinder its growth, as this would primarily benefit China and Russia. Will the “Bitcoin as a reserve asset” narrative come to life again in 2024?

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Political Leaders Back Bitcoin

Trump is the first major political party candidate to embrace Bitcoin, which has drawn attention to BTC as a strategic reserve asset. Former presidential candidate Vivek Ramaswamy has been advising Trump on Bitcoin and digital assets since January. Ramaswamy has proposed backing the US dollar with a basket of commodities, including BTC, to combat inflation and preserve the currency’s value over time.

Additionally, Senator Cynthia Lummis, known as the “Crypto Queen” of Congress, has suggested that the Federal Reserve diversify its foreign currency reserves by adding BTC to its balance sheet. Lummis sees Bitcoin as an excellent store of value and emphasizes the benefits of diversification for the country.

Bitcoin’s Impact on the US Economy

The discussion about Bitcoin as a Strategic Reserve Asset raises questions about how the United States could use the digital asset to bolster its fiscal health and geopolitical position. Alex Thorn, head of firmwide research at Galaxy Digital, told Forbes that BTC’s decentralized nature and robust properties make it well-suited to play a growing role in geopolitics and international trade. Thorn points out that BTC’s network layer could expand to include nation-states, making it a valuable tool for economic diplomacy.

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