Incoming US President Donald Trump is unlikely to support calls for the creation of a US Bitcoin reserve, given his firm belief in the supremacy of the dollar as the global reserve currency, according to TD Coin analysts.
Trump’s latest comments reinforce his case for maintaining the dollar’s central role, TD Coin analysts said in a note. Over the weekend, he threatened the BRICS alliance — which includes countries such as China, Russia, India and Brazil — with 100% tariffs if they go ahead with plans to issue a new currency or seek alternatives to the dollar in global trade.
While some see the strategic bitcoin reserve as a hedge against a potential dollar decline, such a notion runs counter to Trump’s prioritization of U.S. economic and military power, TD Coin analysts said. Trump views the dollar’s dominance as integral to U.S. power and influence, leaving little room for alternative reserves, they added.
Bitcoin reserve advocates, including organizations like the Bitcoin Policy Center, point out that holding digital assets like bitcoin could ensure the United States remains a leader in global finance. However, TD Coin analysts say Trump is unlikely to support a move seen as undermining the dollar.
While Trump may reference Bitcoin in public statements or social media posts to attract attention, TD Coin believes any serious push for a reserve would require significant political capital, which Trump is unlikely to spend on the issue.
Analysts suggest the debate could evolve over the next two years. They argue that bitcoin reserve advocates may need to shift their rhetoric away from framing it as a hedge against a falling dollar to win support in a Trump-led administration.