Based on a Forbes report, former President Donald Trump has recently expressed strong support for Bitcoin (BTC), igniting discussions about classifying the cryptocurrency as a strategic reserve asset.
In a social media post, Trump acknowledged BTC’s geopolitical significance and warned against policies that hinder its growth, stating that such actions would only profit China and Russia.
This endorsement positions Trump as the primary major political party nominee to embrace Bitcoin and has brought attention to BTC as a strategic reserve asset.
Political Leaders Propose Backing US Dollar With Bitcoin
Bitcoin-friendly political leaders and influencers have advocated for considering BTC as a strategic reserve asset. Since January, Vivek Ramaswamy, a former presidential candidate, has been advising Trump on Bitcoin and digital assets.
Per the report, Ramaswamy proposed backing the US dollar with a basket of commodities, including BTC, to curb inflation and maintain the currency’s value over time.
Senator Cynthia Lummis, often known as the “Crypto Queen” of Congress, suggested that the Federal Reserve diversify its foreign currency holdings by adding BTC to its balance sheet.
Lummis believes that Bitcoin is a superb store of value and sees the advantages of the country diversifying its investments.
BTC’s Impact On The Nation’s Economy
The discussion around Bitcoin as a strategic reserve asset raises questions on how the US could leverage the digital commodity to strengthen its fiscal health and geopolitical position.
Alex Thorn, head of firmwide research at Galaxy Digital, told Forbes that BTC’s decentralized nature and sound properties make it well-suited to play a growing role in geopolitics and international trade.
Thorn emphasizes that BTC’s network layer could expand to incorporate nation-states, transforming it right into a useful tool for economic statecraft.
On the time of writing, BTC is trading at $59,760, down over 3% within the last 24 hours.
Featured image from DALL-E, chart from TradingView.com