With the asset class becoming a key political issue for the first time ever, Bitcoin as a strategic reserve asset could be a key route to economic stability, according to one report. Indeed, the Bitcoin Policy Institute (BPI) has discussed how the United States could harness the leading cryptocurrency to form a path to economic resilience.
Amid rising federal debt, the US economic outlook has not been a great one. Moreover, the 2024 presidential election appears critical to correcting course but lacks the proposed policy to affect change. However, the presence of Bitcoin could be one viable way to “monetary stability,” the report notes.
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Bitcoin as a US Strategic Reserve Asset Presents ‘Unique Opportunities’
The cryptocurrency sector has evolved to become a key aspect of global finance. There is no denying that the asset class has grown in prominence. Throughout the year, it has become embraced by institutional investors and global asset managers, only fortifying its position as a viable financial reality.
That could come with a host of benefits. Specifically, Bitcoin could thrive as a US strategic reserve asset and present key stability opportunities for the country, BPI said in a new report. Indeed, they delved into the prospect and discussed the four ways it could be a net positive.
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Firstly, BPI notes that Bitcoin could bring about increased “economic and monetary stability.” Its presence could bring forth increased diversification and protect against issues that may arise from the impending debt crisis. “Bitcoin’s fixed supply and decentralized nature offer a unique complement to traditional monetary reserve assets such as gold and Treasury securities,” they added.
Additionally, they note it is a key plus in regard to geopolitical competition. Through the adoption of BTC as a reserve asset “the US could gain a strategic advantage over adversaries exploring alternative digital currencies,” they note. The BRICS bloc has become the premier global alliance challenging the US dollar. Moreover, they have turned to Bitcoin and digital currencies to do so.
Finally, they note both energy and financial inclusion are benefits to Bitconi as a US reserve asset. Bitcoin mining could drive investment into renewables, the report notes. Moreover, they describe BTC as aligning with “core US values of individual freedom and financial inclusion, offering potential benefits both domestically” and internationally.