Investing.com -- The Trump administration's consideration of establishing a national Strategic Bitcoin Reserve (SBR) has prompted predictions of a global "crypto arms race" by international financial firm deVere Group. This follows President Donald Trump's announcement on Thursday that his administration would assess the feasibility of forming a "national digital asset stockpile." However, the executive order stopped short of immediately establishing an SBR.
Nigel Green, CEO of deVere Group, stated that the US's Strategic Bitcoin Reserve is not just a possibility but an inevitability. This development could trigger a wave of similar policies worldwide and potentially initiate a significant shift in how wealth and power are stored and protected. Countries globally might start acquiring Bitcoin in anticipation of its role in a new global financial order, if they haven't already begun doing so.
The idea of an SBR resembles the function of gold in central banks, with Bitcoin's limited supply of 21 million ensuring its scarcity. This attribute makes Bitcoin resistant to inflationary pressures that affect fiat currencies. For the US, an SBR could act as a safeguard against currency devaluation and potentially appreciate in value, contributing to national debt reduction.
Senator Cynthia Lummis's proposal for the US to acquire 200,000 Bitcoin annually for five years aligns with this logic. Despite current political challenges surrounding large-scale purchases, the US government's existing holdings of 207,000 Bitcoin could be reclassified as part of an SBR, setting a precedent.
Green further highlighted Bitcoin's potential to protect wealth against inflation. By holding it as a reserve, the US could shield its economy and position itself as a leader in the new financial era. This policy might be too strategically sound to ignore.
The formal adoption of an SBR by the US could encourage other nations to follow suit. Other economies, including major players like China and Russia, might speed up their Bitcoin accumulation strategies to avoid being left behind.
Green explained that this 'arms race' could reshape global monetary systems, with countries competing to secure digital assets similarly to how they did with gold. No major nation can afford to be sidelined in the digital economy. A world where states compete for cryptocurrency reserves would likely redefine the balance of economic power.
The potential establishment of a Strategic Bitcoin Reserve by the US marks a pivotal moment in global finance. This step would represent significant progress in integrating digital assets into national economic strategies, ushering in a new era of financial competition and innovation, according to the deVere CEO.
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