Compiled by: Golden Finance
Note: Scott Bessent, the incoming U.S. Treasury Secretary, 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 the use of 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, growing debt burdens, and escalating geopolitical competition are reshaping the foundations of international finance. Competitors led by China are strategizing to reduce reliance on the U.S.-dominated dollar system, establishing alternative financial networks, and exploiting the gaps in the existing order to expand their influence. By issuing dollar-denominated bonds, building gold reserves, and advancing digital payment systems, China seeks to challenge U.S. dominance and reconfigure global capital flows to its advantage. These developments pose both evident 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 conditions for global economic participation. 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 the updated 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 instruments 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 bind allies more closely to the U.S.-centric financial network while creating buffers to prevent fragmentation. Domestically, revitalizing the American industrial base, directing credit towards strategically important 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 like 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 build a lasting geo-economic bloc. Prioritizing access to American 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 strengthening the cohesion of the U.S.-led economic system, offering clear cooperative benefits to allies while preventing adversarial nations from acquiring the tools needed to challenge American influence.
Bitcoin, often referred to as 'digital gold', offers the U.S. 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 over competitors.
Bitcoin is increasingly 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 among other countries (approximately 207,000 Bitcoins), possess the largest mining share (>35%), and have 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 attempts 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, surpassing near-equal competitors. By coordinating monetary reforms with domestic industrial policy and international economic policy, the U.S. can outline the contours of a reimagined global order that resets conditions favorable to our national security and sustained prosperity.
In recent years, central banks have increased their purchases of gold, a trend that has drawn attention. However, recently some countries have also begun to turn to Bitcoin, a move that is less apparent. 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 signaled the start of a global race for sovereign and institutional adoption of Bitcoin. While we have initiated this race, the U.S. still runs the risk of falling behind.
The risks couldn’t be higher. If no action is 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 position as the cornerstone of global stability and prosperity in the 21st century.
