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Cryptopolitan 2024-12-24 05:01:16

Bitcoin Policy Institute sends ‘global reordering proposal’ in the US-China competition to incoming Treasury Department Secretary

In a comprehensive report prepared by Matthew Pines, a National Security Fellow at the Bitcoin Policy Institute for Scott Bessent, the incoming secretary of the Treasury Department, he details the strategic role Bitcoin could play in the US economic policy. There is serious talk about the US looking to adopt Bitcoin as a strategic asset to expand its influence in the cryptocurrency space. The crypto experienced a price surge to $105,000 after President Donald Trump stated his intention to create an SBR in an interview with CNBC’s Jim Cramer. The report states that Bitcoin’s scarcity, portability, and decentralization make it a valuable complement to traditional reserves like gold. The move to establish a Bitcoin reserve is an effort to diversify the United States’ national assets. Embracing the digital asset would also help the country hedge against systematic financial risks and secure an advantage over competitors. No restrictions on this side In his report, Matthew Pines states that BTC is an “out of the box” opportunity for the US if it intends to win the strategic competition with the “geopolitical opportunists” and “aggressive rivals” the administration will face for the next four years. In his report, he urges that the US take full advantage of the “digital gold” to reinforce its position as a leader in financial innovation and bolster long-term fiscal sustainability. “China made a strategic error when they banned Bitcoin and kicked their miners out in 2021. The US was the fortunate beneficiary of that mistake as miners relocated to our shores,” Matthew Pines states in his report. Over the years, the Chinese government has placed many restrictions on mining and cryptocurrency in an effort to maintain financial control and prevent capital outflows. The US already owns the largest BTC holdings, and the creation of the SBR would be the opposite of China’s economic model. To Scott Bessent, Pines says, “In your role as Treasury Secretary, you can urge the President to establish a Strategic Bitcoin Reserve by Executive Order on Day 1.” Likely scenarios of a Bitcoin reserve The US stands to gain three critical benefits from the SBR according to the report. Firstly, it would send a signal that America supports Bitcoin and draw in capital to the markets reinforcing the strength of the financial system. Secondly, it would give the US a headstart among other nations adopting Bitcoin as a reserve asset. This would mitigate the risk of other countries, some hostile and some not, making the move first. Lastly, it would secure the sustainability of the US’s fiscal position and renew the confidence in the treasury market. Pines’ report is complete with a scenario analysis that explores the primary and secondary effects the SBR would have on the US economy if Bitcoin’s market capitalization were to reach different milestones, assuming the reserve had a total of $1M BTC. In every scenario, he found that holding more Bitcoin than allies and competitors benefits the US more than not investing in the rapidly growing asset. By Pines’ calculations, the strategic Bitcoin reserve will save the US from adversaries. In the National Security Fellow’s words; “Failure to act risks ceding ground to adversaries who aim to dismantle the foundations of US economic and geopolitical power.” A Step-By-Step System To Launching Your Web3 Career and Landing High-Paying Crypto Jobs in 90 Days.

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