The world is moving towards a currency system based on Bitcoin; should any government holding gold include Bitcoin in their reserves?
In an era of booming fintech, the rise of Bitcoin and other cryptocurrencies has sparked widespread discussion about the future trajectory of the global monetary system. A recent statement by Coinbase CEO Brian Armstrong has pushed this topic to a new climax. He mentioned that the world is moving towards a currency system based on Bitcoin, and governments holding gold reserves should also incorporate Bitcoin into their strategic reserves. This suggestion has drawn attention and reflection from various parties.
The potential of Bitcoin as a reserve asset:
Bitcoin is viewed as an asset with transformative potential due to its decentralization, resistance to censorship, and fixed supply. Compared to fiat currencies controlled by central banks in traditional monetary systems, Bitcoin provides a value storage method that is not influenced by the policies of any single country. Its supply is capped at 21 million units, giving it a scarcity attribute similar to gold, and it is referred to by many as 'digital gold.' Therefore, some in the international financial markets believe that Bitcoin has the potential to become a global reserve asset.