President Trump has proposed the federal government to keep digital currencies, and some media and political people have pushed back with serious warnings about the impact of the US dollar. But the reality of Trump’s proposal differs sharply from what is painted by Trump’s hysterical critics. BTC is not a threat to the US dollar and the US government’s possession of BTC or other digital currencies is not an endorsement.

The US dollar still dominates the world and represents nearly 60% of all currency contained by central banks from December 2024, according to the IMF. Unlike Fiat currencies, Bitcoin and other digital currencies are not controlled by any central bank. So there is no way to ever have a contradictory relationship with the issuer of BTC – as opposed to the issuer of the Chinese yuan or Russian rubles.

Most of forex reserves that the US possesses are euro and Chinese yuan. But no one encourages the US to stop keeping euros. This is because it is not an approval of this currency to keep a currency in reserve. Countries have Forex reserves primarily for liquidity purposes – mainly to facilitate foreign trade with counterparties using the other currency. And since BTC and ETH are the largest digital currencies, the most fluid and the largest amount of USD transactions, it makes sense for the United States to keep these currencies.

Most importantly, the US dollar dwarf BTC is in size. USD value is more than 1,150x greater than BTC for $ $ 2,300 billion against approx. $ 2 billion for BTC. And BTC ranked like only the 16th largest foreign currency in the world, measured by USD, from the beginning of 2024. So if the United States had 50,000 BTC, it would represent less than 5% of its stock of foreign currency.

Furthermore, the United States has extensive reserves of gold and silver, which none of them are used anymore as currency in somewhat larger country. There does not appear to be any risk that these US holdings will be considered an approval of gold as a currency, although gold is partly held by the United States because it is a good store.

Critics of digital currencies claim that they have no inherent value – but that’s like saying that a Picasso has no inherent value, except for the inherent value of dried paint and an old canvas. What a Picasso has is social value and scarcity value – the same value sources as BTC. Bitcoin’s social value stems from its goal of earning a role outside control over governments. Its scarcity value works to support BTC’s price and improves its applicability as a value of value.

There is another reason why the United States has virtual currencies. They represent a big leap in financial technology and it is in the US’s greatest interest to be at the forefront of Fintech. It is not only to make the United States the most effective financial player, but also to be best prepared for changes that may come in the future. Blockchain technology has been shown to have many uses beyond digital currencies, including reduction of transaction costs and thereby benefit all consumers.

So not only is Trump’s proposal based on solid economy and in accordance with the possession of other foreign currencies, but also gives a boost to the fintech sector. It’s smart and going forward. Sounds like a double win for the US