The cryptocurrency industry is pressuring President-elect Donald Trump and new administration officials to buy billions of dollars of bitcoin for a national cryptocurrency stockpile, according to reports and proposals policies obtained by the New York Times.
The proposals, drafted by the Bitcoin Policy Institute for Trump officials, argue that such a stockpile could protect the country from economic volatility and boost investment in renewable energy. But the point they emphasize most is that if the United States invests heavily in bitcoin, it will be able to “hold the line” of the Western-led world order and counter economic power and geopolitical influence of China.
“Bitcoin can increase the global reach of the dollar network, particularly in emerging markets, where the long arm of Chinese digital authoritarianism seeks to gain ground,” according to a BPI report titled “A ‘Global Economic Reorganization’ of US-China Competition and Bitcoin as a Tool of US Politics,” which is specifically aimed at Scott Bessent, Trump’s choice for Treasury Secretary.
After a lengthy overview of all the reasons why the United States is falling behind China, the report suggests creating a strategic Bitcoin reserve of one million coins and presents a series of projections on how the United States will United could use this fund to exert political influence if the currency’s value rose from its current rate of just over $100,000 per bitcoin to between $500,000 and $1.5 million per coin.
A second policy brief from BPI also explains how a massive investment in Bitcoin could thwart China, but does not limit the list of adversaries, saying the United States must consolidate its crypto leadership and global influence “before the autocrats and warehouses in the Middle East and Asia take it over. the initiative. »
BPI says its proposals are not motivated by a desire to enrich existing bitcoin holders.
“The government’s strategic adoption of Bitcoin is not intended to reward private holders,” the group wrote in a report. “These are national interests: safeguarding America’s financial leadership, ensuring economic resilience, and countering the actions of adversaries. The benefits to bitcoin holders are secondary to the broader goals of securing America’s place in the global financial system.
The Times reported that BPI proposals calling for a strategic stockpile have been coupled with personal lobbying efforts from crypto executives and even Sen. Cynthia Lummis (R-WY).
Trump floated the idea of a bitcoin stock during his election campaign and promised to make the United States a “bitcoin superpower.” He has also appointed cryptocurrency supporters to high government positions, including Paul Atkins, his choice for chairman of the Securities and Exchange Commission.
Last week, the Justice Department received approval to sell $6.5 billion worth of bitcoins it had seized from criminals.
