Former President Donald Trump has recently expressed strong support for Bitcoin (BTC), sparking discussions about classifying the cryptocurrency as a strategic reserve asset, according to a Forbes report.
In a social media post, Trump highlighted Bitcoin’s geopolitical importance and cautioned against policies that hinder its growth, arguing that such actions would benefit China and Russia. This endorsement makes Trump the first major political figure to advocate for Bitcoin as a strategic reserve asset.
Political Leaders Propose Backing US Dollar with Bitcoin
Bitcoin-friendly political leaders and influencers are pushing for BTC to be considered a strategic reserve asset. Since January, former presidential candidate Vivek Ramaswamy has been advising Trump on Bitcoin and digital assets. Ramaswamy proposed backing the US dollar with a basket of commodities, including Bitcoin, to curb inflation and maintain the currency’s value.
Senator Cynthia Lummis, known as the “Crypto Queen” of Congress, suggested that the Federal Reserve diversify its foreign currency holdings by adding Bitcoin to its balance sheet. Lummis sees Bitcoin as an excellent store of value and believes diversifying investments would benefit the country.
BTC’s Impact on the Nation’s Economy
The idea of Bitcoin as a strategic reserve asset raises questions about how the US could use the digital commodity to strengthen its fiscal health and geopolitical standing. Alex Thorn, head of firmwide research at Galaxy Digital, told Forbes that Bitcoin’s decentralized nature and sound properties make it well-suited for a growing role in geopolitics and international trade. Thorn suggests that BTC’s network could expand to include nation-states, turning it into a valuable tool for economic strategy.
Featured image from: coinmarketcap.com