Pakinomist – The Trump administration’s consideration of establishing a national strategic reserve (SBR) has led to predictions of a global “crypto arms race” by international financial firm Devere Group. This follows President Donald Trump’s announcement Thursday that his administration would evaluate the possibility of forming a “national digital asset repository.” However, the executive order stopped short of immediately establishing an SBR.
Nigel Green, CEO of the Devere Group, said that the US strategic Bitcoin reserve is not only a possibility, but an inevitability. This development could trigger a wave of similar policies around the world and potentially usher in a significant shift in how wealth and power are stored and protected. Countries globally may begin acquiring Bitcoin in anticipation of its role in a new global economic order, if they have not already begun to do so.
The idea of an SBR is similar to the gold function of 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 hedge against currency devaluation, potentially appreciating the value and contributing to national debt reduction.
Senator Cynthia Lummis’ proposal that the United States should acquire 200,000 bitcoin annually for five years aligns with this logic. Despite the 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 from inflation. By holding it as a reserve, the US could protect its economy and position itself as a leader in the new economic era. This policy may be too strategically sound to ignore.
The formal adoption of an SBR by the United States could encourage other nations to follow suit. Other economies, including major players like China and Russia, may accelerate 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 in the same way 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 United States marks a pivotal moment in global finance. This step would represent significant progress in integrating digital assets into national economic strategies and usher in a new era of economic competition and innovation, according to the Devere CEO.
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