Compiled by: Golden Finance
Note: The incoming U.S. Treasury Secretary Scott Bessent 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,' proposing to consolidate America's financial dominance using Bitcoin.
The following is a summary of the report:
The global monetary order is under increasing pressure. Heightened fiscal instability, mounting debt burdens, and escalating geopolitical competition are reshaping the foundations of international finance. Competitors led by China are strategically reducing dependence on the U.S.-dominated dollar system, building alternative financial networks, and exploiting existing order's loopholes to expand their influence. By issuing dollar-denominated bonds, building gold reserves, and advancing digital payment systems, China aims to challenge U.S. dominance and reconfigure global capital flows to its advantage. These developments pose both clear threats and strategic opportunities for the U.S.
To maintain leadership in an increasingly competitive environment, the U.S. 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 the resilience of the U.S. economy, and counter the ambitions of competitive forces.
The core of this potential geo-economic strategy is a revamped 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 such as 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 like long-term bonds, strategic gold revaluation, and expanded swap lines will knit allies more closely into a U.S.-centric financial network while creating buffers against division. Domestically, revitalizing America's industrial base, directing credit to strategically significant sectors, and achieving energy independence are crucial for rebuilding economic strength. This effort requires moving 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 U.S. can deploy its financial and technological advantages to forge a lasting geo-economic bloc. Prioritizing 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 adversarial nations from obtaining the tools 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 achieve diversification of 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, companies, and even nation-states, highlighting its utility in the digital age. The U.S. is in a favorable position to leverage this asset, as we hold the most Bitcoin among all countries (approximately 207,000 Bitcoins), possess the largest mining share (>35%), and have the safest and most popular exchanges.
The combination of Bitcoin with dollar-backed stablecoins can enhance the global influence of the dollar network, particularly in emerging markets, where the long arm of 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 a blueprint for ensuring economic leadership, stabilizing fiscal vulnerabilities, and maintaining technological advantages, surpassing near-peer competitors. By coordinating monetary reform with domestic industrial policy and international economic policies, the U.S. can shape the contours of a reimagined global order that resets conditions favorable to our national security and enduring prosperity.
In recent years, central banks around the world have been increasingly purchasing gold, drawing attention to this phenomenon. However, recently some countries have also begun to turn to Bitcoin, although this shift is less apparent. Gulf nations 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 a global race among sovereigns and institutions to adopt Bitcoin. Despite kicking off this race, the U.S. still faces risks of falling behind.
The risks could not be higher. If no action is taken, the U.S. stands to lose ground to adversaries seeking to undermine the foundations of American economic and geopolitical power. By taking bold, integrated measures—grounded in 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.
