The pioneering status in establishing a strategic bitcoin reserve could yield significant benefits for the United States. This was articulated by Sam Lyman, Director of Government Relations at Riot Platforms, in a Forbes column.
“The United States stands to gain much by being a pioneer. As with any new technology, the greatest benefits accrue to early adopters,” he emphasized.
Lyman believes that a strategic reserve of digital gold would not only help reduce external economic debt but also strengthen the dollar, becoming a lever of influence over geopolitical rivals, particularly China and Russia.
He noted that BRICS countries have accelerated their dedollarization efforts and are hastening the development of their own currency. The leaders of this initiative, China and Russia, are “shedding thousands of US Treasury bonds in exchange for gold.” According to the expert, this reduces their dependence on the dollar system, and other countries might follow suit:
“But what if the US had a trump card against the weaponization of gold?”
Lyman referenced a recent statement by Federal Reserve Chairman Jerome Powell, who described the first cryptocurrency as a competitor to gold, not the dollar. In the expert’s view, bitcoin surpasses the precious metal as a savings asset, which has driven its growth.
“Like gold, bitcoin is durable, scarce, and difficult to mine. But unlike gold, it is easy to verify, infinitely divisible, and can be sent anywhere in the world at the speed of light,” the expert noted.
However, he stressed the importance of being a pioneer in this context. By becoming the first G20 country to establish a strategic bitcoin reserve, the US would “virtually compel other nations to follow suit.”
“The adoption of such a reserve by the state would trigger a frenzy around digital gold. This would slow the flight to physical gold, possibly even reverse it. American policymakers could use bitcoin as a tool of economic statecraft, balancing China’s and Russia’s attempts to move away from the dollar towards precious metals,” Lyman explained.
Moreover, the expert noted that diversifying state assets is beneficial for the US economy and, consequently, for the dollar. He further suggested boosting confidence in the American currency by promoting dollar-backed stablecoins abroad.
“This combination would eliminate any perception that the creation of a bitcoin reserve in the US signifies a lack of confidence in the dollar,” the specialist emphasized.
He added that stablecoin issuers hold about $120 billion in US Treasury bonds. With this amount, they rank 18th among holders of the instrument worldwide, above Germany and South Korea.
“Promoting stablecoins abroad while simultaneously accumulating bitcoins at home is the double punch our country needs to respond to the economic aggression of China and Russia,” Lyman concluded.
Back in December, former US Treasury Secretary Lawrence Summers called the plan to create a strategic bitcoin reserve “madness.”