Economic Daily: Multiple 'Hurdles' Must Be Overcome for Bitcoin to Truly Become a National Reserve Asset of the U.S.

Odaily Planet Daily News The Economic Daily published an article titled 'Will Bitcoin Become a Reserve Asset for the United States?' The article states that although the incoming U.S. government shows great interest in cryptocurrencies, there are still multiple 'hurdles' to overcome for Bitcoin to truly become a national reserve asset of the United States. From a policy perspective, designating Bitcoin as a strategic reserve asset requires a complex legislative process, involving coordination and balancing of interests among multiple regulatory agencies. Additionally, traditional financial institutions in the U.S., conservative legislators, and interest groups skeptical of digital assets may strongly oppose it, making implementation quite challenging. From market and regulatory perspectives, Bitcoin's price often experiences severe fluctuations, which significantly contrasts with the stringent stability requirements of national reserves. Furthermore, the U.S. cryptocurrency regulatory framework is inadequate, and incorporating Bitcoin into the national reserve system would require establishing a more comprehensive legal framework. U.S. media has also pointed out that Bitcoin has never been a good inflation hedge—its relationship with speculative stocks is much closer than with traditional inflation hedging tools like gold or bonds linked to inflation. During the previous Republican administration, the attitude towards Bitcoin was not friendly, considering it 'air with no value base.' However, during the recent election campaign, the stance underwent a 180-degree turn. Some analysts suggest that this shift reflects the new U.S. government's desire for the U.S. to take a leading position in the digital currency field to maintain competitiveness in the global economy, while also attempting to reduce national debt issuance through the appreciation of Bitcoin without increasing government deficits, in light of the immense pressure from the national debt. Furthermore, the long-standing abuse of the dollar's status, unchecked money printing, and severe overdraft on dollar credit by the U.S. have begun to show negative consequences, accelerating the pace of 'de-dollarization' in many countries. The change in attitude of some Americans towards Bitcoin is an attempt to protect the already weakened international status of the dollar. The explosive rise in Bitcoin prices seems to give some people hope of witnessing a process similar to 'the disintegration of the Bretton Woods system to the establishment of petrodollars.' However, Bitcoin's inherent properties are unstable, and once it becomes a strategic reserve asset, it could pose greater challenges for regulators and may also alert other countries, exacerbating friction in the international financial arena. Whether the U.S. economy, eroded by high inflation for many days, can withstand such shocks remains uncertain.