Former President Donald Trump has recently voiced strong support for Bitcoin (BTC), sparking conversations about recognising the cryptocurrency as a strategic reserve asset, according to a Forbes report.
In a post on his social platform Truth, Trump highlighted Bitcoin’s geopolitical importance and cautioned against policies that could impede its growth, stating that such actions would only benefit China and Russia.
This move positions Trump as the first major political party nominee to endorse Bitcoin and has brought significant attention to its potential as a strategic reserve asset.
Political Figures Suggest Backing US Dollar with Bitcoin
Several Bitcoin-friendly political leaders and influencers have proposed using BTC as a strategic reserve asset. Since January, Vivek Ramaswamy, a former presidential candidate, has been advising Trump on Bitcoin and digital assets.
Ramaswamy suggested backing the US dollar with a mix of commodities, including BTC, to combat inflation and preserve the currency’s value.
Senator Cynthia Lummis, known in Congress as the “Crypto Queen,” recommended that the Federal Reserve diversify its foreign currency reserves by incorporating BTC.
Lummis views Bitcoin as an excellent store of value and believes diversifying the country’s investments would be beneficial.
Bitcoin’s Potential Economic Impact on the US
The idea of Bitcoin as a strategic reserve asset raises questions about how the US might use this digital commodity to bolster its fiscal health and geopolitical standing.
Alex Thorn, head of firmwide research at Galaxy Digital, told Forbes that Bitcoin’s decentralised nature and robust properties make it well-suited for an increasing role in geopolitics and international trade.
Thorn noted that Bitcoin’s network could expand to include nation-states, turning it into a valuable economic tool.
Currently, Bitcoin is trading at $59,760, down more than 3% in the past 24 hours.
