President Trump proposed that the federal government has digital currencies, and some media and policies have pushed with disastrous warnings in the US dollar impact. But the reality of Trump’s proposal differs strongly from that painted by Trump’s hysterical criticism. BTC is not a threat to the US dollar and the US BTC or any other digital currency is not approval.
The US dollar still dominates the world, representing almost 60% of all the currencies held by central banks, in December 2024, according to the IMF. Unlike fiduciary currencies, bitcoin and other digital currencies are not governed by any central bank. There is therefore no way to have a contradictory relationship with the BTC transmitter – unlike the Chinese yuan transmitter or Russian rubles.
Most Forex reserves owned by the United States are the euros and the Chinese yuan. But no one asks the United States to stop holding euros. Indeed countries hold Forex reserves mainly for liquidity purposes – mainly to facilitate foreign trade with counterparties using the other currency. And, as BTC and ETH are the largest digital currencies, the most liquid and the largest volume of USD transactions, it is logical that the United States has these currencies.
More importantly, the US dollar Eclipse BTC in size. The USD value is greater than 1,150 times more than BTC at 2,300 billion USD dollars compared to around $ 2 billion for BTC. And BTC ranked as the 16th largest foreign currency in the world, measured by the USD, at the beginning of 2024. Thus, if the United States held 50,000 BTC, it would represent less than 5% of its reserve titles of currencies.
In addition, the United States has large gold and silver reserves, which is no longer used as a currency by any major country. There is no risk that these American assets will be considered as an approval of gold in currency, although gold will be held by the United States, in part, because it is a good store of value.
Critics of digital currencies argue that they have no inherent value – but that is to say that a Picasso has no inherent value, apart from the inherent value of dried painting and an old canvas. What Picasso has is social value and rarity value – the same sources of value as BTC. Bitcoin’s social value stems from its objective of playing a role out of control of governments. Its rarity value acts to support the price of BTC and improves its usefulness as a value store.
There is another reason for the United States to have virtual currencies. They represent a major jump in financial technology and it is in the primary interest of the United States to be at the forefront of the Fintech. It is not only a question of doing the most effective financial actor in the United States, but also of being better prepared for changes that could arrive in the future. Blockchain technology has proven to have many uses beyond digital currencies, including the reduction in transaction costs, thus benefiting all consumers.
Thus, not only is Trump’s proposal based on a solid and consistent economy with the assets of other foreign currencies, but also, it gives a boost to the Fintech sector. He is intelligent and turned forward. It looks like a double victory for the United States
