According to a report by Forbes, former President Donald Trump has recently expressed strong support for bitcoin (btc), sparking discussions about classifying the cryptocurrency as a strategic reserve asset.
On a social network x.com/SamLyman33/status/1800863431161172256″ target=”_blank” rel=”noopener nofollow”>mailTrump acknowledged the geopolitical importance of btc and warned against policies that hinder its growth, stating that such actions would only benefit China and Russia.
This endorsement positions Trump as the first candidate from a major political party to embrace bitcoin and has drawn attention to btc as a strategic reserve asset.
Political leaders propose backing the US dollar with bitcoin
Political leaders and influencers who support bitcoin have been advocating for btc to be considered a strategic reserve asset. Since January, Vivek Ramaswamy, a former presidential candidate, has been advising Trump on bitcoin and digital assets.
For him bitcoin-as-a-strategic-reserve-asset/” target=”_blank” rel=”noopener nofollow”>reportRamaswamy 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, known as the “Cryptocurrency Queen” of Congress, suggested that the Federal Reserve diversify its foreign currency holdings by adding btc to its balance sheet.
Lummis believes bitcoin is an excellent store of value and sees the benefits of the country diversifying its investments.
btc Impact on the country's economy
The debate surrounding bitcoin as a strategic reserve asset raises questions about how the United States could leverage this digital commodity to strengthen its fiscal health and geopolitical position.
Alex Thorn, head of enterprise-wide research at Galaxy Digital, told Forbes that btc’s decentralized nature and strong holdings make it ideally suited to play an increasingly important role in geopolitics and international trade.
Thorn emphasizes that btc’s network layer could be expanded to include nation-states, making it a valuable tool for economic governance.
At the time of writing, btc is trading at $59,760, down more than 3% in the past 24 hours.
Featured image of DALL-E, chart from TradingView.com
