The United States is reportedly planning to leverage Bitcoin and gold as anchor assets for a new global financial system. The implementation plan for this initiative includes growing the nation’s Bitcoin reserves, likely through additional confiscation and direct purchase of Bitcoin by state governments. Such a move would be bolstered by current federal-level executive acts and legislative proposals designed to legitimize the use of Bitcoin. This strategy aligns with the Trump administration's broader goal of reinforcing the United States' central role in the global economy by establishing a new set of rules and leveraging existing globalization dividends to challenge competitors like China. The vision includes a framework of US dollar stablecoins, gold, and Bitcoin to bolster the dollar's stability and global trade influence.
Solidifying Bitcoin Reserves
The U.S. government’s interest in Bitcoin goes further than just regulatory control. The nation already has a huge trove of Bitcoin, gained mostly through law enforcement and asset forfeiture. These holdings are now seen as a strategic reserve, a digital version of Fort Knox.
"Establishing a Bitcoin reserve is to establish a virtual Fort Knox" - Waterdrip
A few U.S. state governments have made bold moves to add Bitcoin to their financial arsenals. Or even more extremophilically, they have moved on to approve the contemplated purchase of Bitcoin for state reserves using fiscal funds. This grassroots, decentralized approach is indicative of a growing consensus on the potential of Bitcoin. Rather, people view it as a store of value and a hedging instrument against economic uncertainties.
The federal government’s role will be essential in determining whether the United States becomes the global home for Bitcoin or an inhospitable environment. Executive orders and legislative proposals continue to focus on setting the regulatory framework for digital assets. This framework is important for encouraging innovation and attracting investment into the rapidly growing global cryptocurrency marketplace.
A New Global Trade Order
The strategic objective behind the U.S.'s embrace of Bitcoin and gold is to re-establish its dominance in the global economic landscape. By formulating new rules and capitalizing on the benefits of globalization, the U.S. aims to counter the rise of competitors, particularly China. Specifically, this means developing new value anchors to re-establish the credibility of the U.S. dollar and support the continued use of the U.S. dollar in global trade.
"use Bitcoin and gold as anchor assets for the new financial system" - Waterdrip
Our proposed framework imagines a living, breathing, transactional system. Counterintuitively, in this system, the U.S. dollar stablecoin, gold, and Bitcoin all combine in service of strengthening the dollar’s hegemony. This “dual asset anchoring” strategy marries the security and stability of traditional gold reserves with the explosive future potential of collateralized bitcoin reserves.
The Trump administration has been explicit in supporting the expansion of the encryption industry. That makes it clear that they’re quite serious about their desire to stimulate innovation in this space. In exchange, they pledge to pressure Congress to enact the legislation. This legislation will lay a solid foundation for a clear regulatory framework for stablecoins and digital assets.
Digital Currency Regulation
The U.S. administration has shown little appetite for regulating digital currencies. This includes a bill designed to bring stablecoins with a circulation exceeding $10 billion under the supervision of the Federal Reserve. The aim is to assert jurisdiction, oversight, and regulatory power over the minting of these crypto dollars, or U.S. dollar-pegged stablecoins. It is how we will keep America’s crypto dominance a dollar-dominated one.
The U.S. apparently is committed to being at the forefront of digital currency regulation. It wants to make sure that the rules serve its strategic interests. By establishing clear guidelines and supervisory frameworks, the U.S. hopes to foster innovation while mitigating the risks associated with cryptocurrencies.
In early 2025, the Bitcoin will be acquired as a Strategic Reserve Asset. This move will further solidify its place within the U.S. financial system. This strategic move is part of a long-term commitment to Bitcoin and its potential to be an alternative asset alongside traditional assets such as gold.
