The US considering a Strategic Bitcoin Reserve sparks predictions of global 'crypto arms race'.
From Investing.com
January 24, 2025 08:16:16 AM:
The Trump administration is considering establishing a national Strategic Bitcoin Reserve (SBR), leading to predictions of a global “crypto arms race” by deVere Group. This move could reshape how wealth and power are stored and protected, with other countries potentially acquiring Bitcoin to prepare for a new financial order.
Nigel Green, CEO of deVere Group, believes the US forming a Strategic Bitcoin Reserve is not just a possibility, but an inevitability. This could lead to a shift in global economic strategies as countries recognize Bitcoin’s value as a safeguard against inflation and currency devaluation.
The concept of an SBR is akin to gold reserves in central banks, with Bitcoin’s limited supply making it resistant to inflation. Senator Cynthia Lummis’s proposal for the US to acquire 200,000 Bitcoin annually aligns with the idea of using Bitcoin as a hedge against economic uncertainties.
By adopting Bitcoin as a reserve asset, the US could protect its economy from inflation and position itself as a leader in the new financial landscape. This strategic move could set the stage for other countries to follow suit and secure their positions in the digital economy.
The establishment of a Strategic Bitcoin Reserve by the US may trigger a global competition among nations to accumulate digital assets. This potential “arms race” could redefine the balance of economic power as countries vie for cryptocurrency reserves similar to how they did with gold reserves in the past.
The proposed establishment of a Strategic Bitcoin Reserve by the US signifies a major step in integrating digital assets into national economic strategies. This move could spark a new era of financial competition and innovation, positioning countries at the forefront of the digital economy.
Read more at Investing.com: Potential U.S. strategic bitcoin reserve to spark ‘global crypto race’, deVere’s Green By Investing.com