The post If Trump creates a strategic Bitcoin reserve, could it undermine the dollar and accelerate hyperbitcoinization? appeared on BitcoinEthereumNews.com.

Strategic Bitcoin Reserve can hyperbitcoinize the world. So, this can turn the dollar obsolete, and there could be just bitcoin for people like the present dollar. It would be very impacting to the world’s financial system when a financial institution manages its reserve. This will either have positive or negative impacts on the US dollar depending on how it will be used within the system. Precisely, it all depends on how these changes will be dealt with. Strengthening the US dollar through Bitcoin It would seem that the Bitcoin reserve would strengthen the US dollar since Bitcoin would most probably work very well with the US financial system and make it even more stable. And, perhaps even the limited supply and the growing usage of Bitcoin as a store of value may even be sufficient to make the dollar endure as the world’s reserve currency. If Bitcoin can back the US dollar, then it will be used in checking the inflationary forces that have been on a sway over that economy and let the government acquire assets that are free from the ups and downs to which traditional fiat currencies are liable. This means that Bitcoin can act as a buffer by stabilizing the dollar and act as an economic hedge. This also means that the US accepts new technology in finance and other kinds of currencies. Most countries are considering digital currencies or alternatives to the US dollar. This will further make the dollar a significant currency in international finance even when countries start to use Bitcoin. It will look to the US for knowledge of exactly how it is supposed to use the digital currency in its economy. The US will also find a place in the international financial system through the acceptance of Bitcoin as part of…

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Filed under: News - @ January 2, 2025 10:11 pm