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

Cryptopolitan
Updated
Mitrade
coverImg
Source: Shutterstock

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.”

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
Your March Potentials Products to Look Out forIn March 2025, we will witness several major events in the financial markets with the Federal Reserve, European Central Bank, and Bank of Japan all set to announce interest rate decisions. Trump's tariff policy sweeps through the financial markets, causing significant volatility in multiple products.
Author  Mitrade
Mar 03, Mon
In March 2025, we will witness several major events in the financial markets with the Federal Reserve, European Central Bank, and Bank of Japan all set to announce interest rate decisions. Trump's tariff policy sweeps through the financial markets, causing significant volatility in multiple products.
placeholder
Bitcoin could be included in newly approved sovereign wealth fundPresident Donald Trump signed an executive order on Monday that details plans for the creation of a sovereign wealth fund for the development of the US economy, drawing the attention of crypto experts who believe that the fund could include Bitcoin.
Author  FXStreet
Feb 04, Tue
President Donald Trump signed an executive order on Monday that details plans for the creation of a sovereign wealth fund for the development of the US economy, drawing the attention of crypto experts who believe that the fund could include Bitcoin.
placeholder
Bitcoin Outlook 2025As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
Author  TradingKey
Jan 23, Thu
As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
placeholder
Will Bitcoin price reach $200K after Trump’s inauguration? BitDCA CTO weighs MicroStrategy, El-Salvador impactBitcoin price hit a new all-time high of above $109,000 amid Trump’s inauguration on Monday.
Author  FXStreet
Jan 22, Wed
Bitcoin price hit a new all-time high of above $109,000 amid Trump’s inauguration on Monday.
placeholder
Is Bitcoin’s Upward Cycle Back? Key Insights Into The Latest RecoveryBitcoin (BTC) has rebounded to trade above $99,000 following its significant dip earlier this week. While the latest US Consumer Price Index (CPI) news appears to have contributed to this quick
Author  NewsBTC
Jan 16, Thu
Bitcoin (BTC) has rebounded to trade above $99,000 following its significant dip earlier this week. While the latest US Consumer Price Index (CPI) news appears to have contributed to this quick