As Donald Trump prepares to take office as the U.S. President on January 20th, crypto enthusiasts and financial experts are contemplating the impact of cryptocurrency—particularly Bitcoin (BTC)—on the economy. They’re also considering whether Trump’s expressed pro-crypto policies could bolster the U.S. dollar or undermine its status as the world’s primary reserve currency.
In conversation with CryptoMoon, Lee Bratcher – head of the Texas Blockchain Council – stated that Bitcoin holds a position similar to gold and does not challenge the U.S. dollar.
The supporter of the cryptocurrency sector pointed out that stablecoins, which are overcollateralized and pegged to the U.S. dollar, are expected to maintain the prevalence of the U.S. dollar. Speaking with CryptoMoon, Bratcher stated this.
“If we want to continue US hegemony, we need the dollar to remain the world’s reserve currency. For that to happen, we need stablecoins to proliferate because stablecoins are giving dollar access to people around the world.”
During his speech at the DealBook Summit, New York City, in December 2024, Federal Reserve Chair Jerome Powell compared Bitcoin to gold, implying that it does not pose a direct threat to the U.S. dollar.
President-elect Trump to prop up the US dollar with Bitcoin?
The president-elect, Donald Trump, had earlier mentioned to Maria Bartiromo on Fox News that it might be possible for the U.S. administration to employ Bitcoin as a means to help manage or reduce its staggering $35 trillion national debt.
In simpler terms, Bitcoin Well’s CEO, Adam O’Brien, stated to CryptoMoon that it’s expected that Donald Trump might temporarily support Bitcoin to strengthen the struggling U.S. dollar, but he won’t stop using the dollar altogether.
Obrien stated, ‘I’m not convinced President Trump has the necessary foundation to delink the US from the dollar.’ However, he added, ‘I do believe the USA will eventually break away from the dollar system. I just don’t think it will be under Trump’s leadership.’
Trump’s policies will depend on US economic standing
According to Ki Young Ju, the founder and CEO of CryptoQuant, the policies of the incoming U.S. president regarding Bitcoin are expected to be influenced by the state of the U.S. economy and the position of the U.S. dollar within international marketplaces.
Ju contends that it’s improbable for Trump to create a strategic Bitcoin reserve, and he might even renege on crypto-friendly policies, should the U.S. and the dollar maintain their robustness.
Even though the dollar has been decreasing in value over the long term, people worldwide continue to view it as a secure place to keep wealth and a favored method for storing value, according to the CEO.
Ju suggested that Trump’s focus on “making America great again” and improving the U.S. economy can be interpreted as a sign of his dedication towards reinforcing the strength of the U.S. dollar.
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2025-01-20 18:21