With Donald Trump set to be inaugurated as US president on Jan. 20, crypto advocates and trade analysts are weighing the position of crypto — particularly Bitcoin (BTC) — within the economic system, and whether or not Trump’s acknowledged pro-crypto insurance policies will prop up the US greenback or erode its place as the worldwide reserve foreign money.
Talking to Cointelegraph, Lee Bratcher — president of trade advocacy group Texas Blockchain Council — stated that Bitcoin occupies the identical place as gold and isn’t a competitor to the US greenback.
The crypto trade advocate added that overcollateralized, dollar-pegged stablecoins will doubtless extend US dollar dominance. Bratcher instructed Cointelegraph:
“If we need to proceed US hegemony, we’d like the greenback to stay the world’s reserve foreign money. For that to occur, we’d like stablecoins to proliferate as a result of stablecoins are giving greenback entry to individuals all over the world.”
Federal Reserve Chair Jerome Powell also likened Bitcoin to gold in a December 2024 look on the DealBook Summit in New York and concluded that BTC was not a direct competitor to the greenback.
Trump making guarantees to Bitcoiners on the 2024 Bitcoin convention. Supply: Cointelegraph
Associated: US Bitcoin reserve could slash national debt 35% by 2049: VanEck
President-elect Trump to prop up the US greenback with Bitcoin?
President-elect Trump beforehand instructed Maria Bartiromo of Fox Information that the US authorities might use Bitcoin to offset the $35 trillion national debt.
Adam O’Brien, founder and CEO of BTC monetary companies firm Bitcoin Effectively, instructed Cointelegraph that Trump would doubtless use Bitcoin to prop up the ailing US greenback within the brief time period however wouldn’t abandon the greenback.
Present United States nationwide debt. Supply: US Debt Clock
“I don’t see President Trump being based mostly sufficient to de-dollarize the USA,” O’Brien stated. “I believe that finally, the USA shall be de-dollarized. I don’t suppose it’ll be Trump that brings that to fruition, although.”
Trump’s insurance policies will depend upon US financial standing
CryptoQuant founder and CEO Ki Younger Ju not too long ago stated that the incoming president’s Bitcoin insurance policies will doubtless depend on US economic standing and the greenback’s power in international markets.
Ju argued that Trump is unlikely to establish a Bitcoin strategic reserve and will even backpedal on guarantees of pro-crypto insurance policies if the US and the greenback proceed to point out power.
Regardless of a long-term worth depreciation since 1913, the US greenback has been gaining power in opposition to different fiat currencies since October 2024. Supply: TradingView
The CEO stated people all over the world nonetheless see the greenback as a protected haven foreign money and the popular instrument to retailer worth, regardless of its long-term depreciation.
Trump’s rhetoric of “making America nice once more” and boosting the financial place of the US are additionally indicators that the president is dedicated to strengthening the greenback, Ju added.
Journal: Bitcoiners are ‘all in’ on Trump since Bitcoin ’24, but it’s getting risky
