Translated by: Golden Finance
Note: Scott Bessent, the nominee for U.S. Treasury Secretary, proposed the concept of 'Global Economic Reordering.'
Recently, the Bitcoin Policy Institute prepared a report for Scott Bessent ('A Global Economic Reordering: US-China Competition and Bitcoin as a Tool of US Statecraft'), proposing to consolidate the financial dominance of the United States using Bitcoin.
The following is a summary of the report:
The global monetary order is under increasing pressure. Fiscal instability, rising debt burdens, and escalating geopolitical competition are reshaping the foundations of international finance. Competitors led by China are taking strategic steps to reduce dependence on the U.S.-dominated dollar system, establishing alternative financial networks, and exploiting the vulnerabilities in the existing order to expand their influence. Through measures such as issuing dollar-denominated bonds, building 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 clear threats and strategic opportunities for the U.S.
To maintain leadership in an increasingly competitive environment, the United States must adopt a forward-looking strategy that redefines the terms of global economic engagement. 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 geo-economic strategy is an updated monetary system—'Bretton Woods 3.0'—which combines the stability of traditional reserve assets like gold and U.S. Treasury bonds with emerging financial instruments like Bitcoin and dollar-backed stablecoins. By leveraging these assets, the United States 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 fragmentation. 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 away 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.
On the international front, the United States can deploy its financial and technological advantages to create a lasting geo-economic bloc. Prioritizing U.S. innovations in artificial intelligence, energy systems, and digital infrastructure will provide a strong incentive for alliances. These technologies are not only crucial for global competitiveness but also for enhancing the cohesion of the U.S.-led economic system, offering clear cooperative benefits to allies while preventing hostile nations from acquiring the tools needed to challenge U.S. influence.
Bitcoin is often referred to as 'digital gold,' providing the U.S. with a strategic advantage aligned 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, often referred to as 'digital gold,' is increasingly adopted 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 among other countries (approximately 207,000 Bitcoins), have the largest mining share (>35%), and host the safest and most popular exchanges.
The combination of Bitcoin and dollar-backed stablecoins can enhance the global influence of the dollar network, especially in emerging markets where the long arm of Chinese digital authoritarianism seeks to gain traction. Supporting these tools will place 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 over near-equal competitors. By coordinating monetary reform with domestic industrial policy and international economic policy, the U.S. can define the contours of a reimagined global order that resets conditions favorable to our national security and sustained prosperity.
In recent years, the purchasing volume of gold by central banks around the world has been increasing, drawing attention. However, recently some countries have also begun to turn to Bitcoin, a move that is not as obvious. Gulf countries and others may have started to diversify into Bitcoin. The election of President Donald Trump and his supportive remarks about Bitcoin may have sounded the starting gun for global sovereign and institutional adoption of Bitcoin. Although we have initiated this race, the U.S. still faces risks of lagging behind.
The risks are unprecedented. If no action is taken, the U.S. could lose ground to adversaries seeking 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 position as the cornerstone of global stability and prosperity in the 21st century.
