Translated by: Golden Finance
Note: Scott Bessent, the nominee for U.S. Secretary of the Treasury, has proposed the concept of 'Global Economic Reordering.'
Recently, the Bitcoin Policy Institute prepared a report for Scott Bessent titled 'A Global Economic Reordering: US-China Competition and Bitcoin as Tool of US Statecraft', which proposes using Bitcoin to solidify America's financial dominance.
The following is a summary of the report:
The global monetary order is under increasing pressure. Heightened fiscal instability, rising debt burdens, and escalating geopolitical competition are reshaping the foundations of international finance. Competitors led by China are adopting strategies to reduce dependence on the U.S.-dominated dollar system, building alternative financial networks, and exploiting the vulnerabilities of the existing order to expand their influence. By issuing dollar-denominated bonds, establishing gold reserves, and advancing digital payment systems, China seeks to challenge U.S. dominance and reconfigure global capital flows in its favor. These developments pose both an obvious threat and a strategic opportunity for the United States.
To maintain leadership in an increasingly competitive environment, the U.S. must adopt a forward-looking strategy that redefines the terms of global economic participation. This strategy must integrate monetary, technological, industrial, and geopolitical policies to address structural vulnerabilities, enhance U.S. economic resilience, and counter the ambitions of competitive forces.
The core of this potential geopolitical economic strategy is a renewed monetary system - 'Bretton Woods 3.0', which combines the stability of traditional reserve assets such as gold and U.S. Treasury bonds with emerging financial tools like Bitcoin and dollar-backed stablecoins. By leveraging these assets, the U.S. can modernize its financial architecture, stabilize its fiscal situation, and enhance trust in the dollar system. Tools such as long-term bonds, strategic gold revaluation, and expanded swap lines will more closely integrate allies with the U.S.-centered financial network while creating buffers to prevent a split. Domestically, revitalizing the U.S. industrial base, directing credit toward strategically significant sectors, and achieving energy independence are crucial for rebuilding economic strength. This effort requires breaking free from speculative financial practices and excessive reliance on short-term liquidity. Instead, mechanisms such as deregulation, strategic wealth funds, and financial sector reforms will ensure that credit allocation is realigned to drive long-term economic growth, technological innovation, and supply chain resilience.
Internationally, the U.S. can deploy its financial and technological advantages to forge a lasting geopolitical coalition. Prioritizing U.S. innovations in artificial intelligence, energy systems, and digital infrastructure will provide strong incentives for alliances. These technologies are not only crucial for global competitiveness but also vital for enhancing the cohesion of the U.S.-led economic system, offering clear cooperative benefits to allies while preventing hostile nations from obtaining the tools necessary to challenge American influence.
Bitcoin, often referred to as 'digital gold', provides the U.S. with a strategic advantage that aligns with this strategy. Its scarcity, portability, and decentralization make it an ideal complement to traditional reserve assets like gold. By establishing a Strategic Bitcoin Reserve (SBR), the U.S. can diversify its national balance sheet, hedge against systemic financial risks, and ensure an asymmetric advantage relative to competitors.
Bitcoin is increasingly being adopted as 'digital gold' by institutional investors, corporations, and even nation-states, highlighting its practicality in the digital age. The U.S. is in a favorable position to leverage this asset, as we hold the most Bitcoin (approximately 207,000 Bitcoins) among other countries, have the largest share of mining (>35%), and boast the most secure and popular exchanges.
The combination of Bitcoin and dollar-backed stablecoins can enhance the global influence of the dollar network, particularly in emerging markets where China's digital authoritarianism seeks to gain traction. Supporting these tools will position the U.S. at the forefront of financial innovation while reinforcing the global dominance of the dollar system.
This strategy is not just about financial competition; it is also a blueprint for ensuring economic leadership, stabilizing fiscal vulnerabilities, and maintaining technological advantages beyond near-peer competitors. By coordinating monetary reform with domestic industrial policy and international economic policy, the U.S. can outline the contours of a reimagined global order reset in conditions favorable to our national security and sustained prosperity.
In recent years, central banks have significantly increased their purchases of gold, drawing attention. However, some countries have recently begun to shift towards Bitcoin, a move that is less obvious. Gulf nations and others may have already started diversifying into Bitcoin. The election of President Donald Trump and his pro-Bitcoin rhetoric may have sounded the starting gun for the global race among sovereigns and institutions to adopt Bitcoin. Although we have initiated this race, the U.S. still faces the risk of falling behind.
The risks could not be higher. If action is not taken, the U.S. risks losing ground to adversaries attempting to undermine the foundations of American economic and geopolitical power. By taking bold, integrated measures—based on modernizing reserve assets, industrial revitalization, and technological leadership—the U.S. can solidify its role as the cornerstone of global stability and prosperity in the 21st century.
