“We hope that all remaining bitcoins are made in the United States!” Republican presidential candidate Donald Trump expressed strong support for Bitcoin in a post on “Truth Social” last month. In the same article, he recognized the geopolitical significance of the world’s largest cryptocurrency and warned that any policy attempting to hinder Bitcoin would “only help Russia.” Trump’s statement not only made him the first nominee in a major political party to support Bitcoin, but also made the discussion of classifying Bitcoin as a strategic reserve asset the focus.
Thanks to Bitcoin-friendly political leaders, these discussions are receiving increasing attention in policy circles. For example, former presidential candidate Vivek Ramaswamy has been providing advice on Bitcoin and digital assets to President Trump since January. Ramaswamy took a unique position in the final weeks of the campaign, suggesting that the dollar should be backed by a basket of commodities, which may include Bitcoin.
Ramaswamy’s plan echoes a similar proposal from independent presidential candidate Robert F. Kennedy, where a small portion of US bonds “will be supported by hard currency, gold, silver, platinum, or Bitcoin.” The purpose of Ramaswamy and Kennedy’s proposals is to suppress inflation by pegging the dollar to deflation assets, thus maintaining its value over time.
Senator Cynthia Lummis, known as the “Cryptocurrency Queen of Congress,” is another supporter of using Bitcoin to improve the national finances. In February 2022, she suggested that the Federal Reserve diversify its balance sheet with Bitcoin by adding $40 billion in foreign currency. She still believes that holding digital currency as part of the national financial investment portfolio is beneficial.
After Trump’s post hinted at the growing political importance of Bitcoin, I asked Senator Lummis for her thoughts on the discussion surrounding Bitcoin as a strategic reserve asset. Senator Lummis seemed interested in the idea. In her own words: “Bitcoin is an incredible store of value, and I certainly see the benefits of diversifying our country’s investments.”
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cryptocurrency
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Jinse Finance