Trump’s plan for a strategic bitcoin reserve could trigger a crypto ‘arms race’ and reshape the global economic order
Cryptocurrencies promise to be central to Donald Trump’s economic policies in his second term as US president. Arguably his most controversial proposal is the creation of a strategic bitcoin reserve (SBR).
This would involve the US buying up large amounts of the cryptocurrency over the coming years to hold as a reserve, similar to the country’s strategic petroleum reserve.
But there has been debate between advocates of the plan and sceptics like Federal Reserve chair Jerome Powell. The main political questions have centred around what an SBR would look like and whether Trump will even be able to deliver on this proposal.
However, there is potentially an even bigger idea in play – a significant shift in the global economic order, where new players and new forms of currency begin to take an ever-larger role.
