The CEO of CryptoQuant, a market intelligence platform, recently shared his thoughts on the potential for the US government to adopt a Bitcoin standard. Ki Young Ju believes that for the US to consider this move, it would need to feel its global economic dominance threatened by another nation.
Ju expressed his personal support for the idea of a Bitcoin standard but questioned whether the US, currently experiencing economic growth while other economies struggle, would actually adopt Bitcoin as a strategic asset. He emphasized that market sentiment suggests confidence in the US’s continued supremacy.
The concept of a Bitcoin Standard involves using Bitcoin as a reserve asset, a notion explored in Saifedean Ammous’s book of the same name. Ju acknowledged that while it’s possible for the government to implement a BTC standard, their intentions would likely differ significantly from those of Bitcoin enthusiasts and investors.
He suggested that the government may purchase Bitcoin for risk management or economic leverage, but their motivations would not align with the expectations of Bitcoin supporters. Ju highlighted the reality that the US dollar remains dominant in the global economy, with capital flowing into the country, reinforcing its strength.
Ju also speculated on the potential impact of President-elect Donald Trump’s policies on the government’s stance on Bitcoin. If Trump successfully strengthens the US economy and the dollar’s supremacy, he may shift away from his pro-Bitcoin position, prioritizing other issues to maintain support from voters.
In a related development, Fed Chair Jerome Powell recently stated that the government is not permitted to hold Bitcoin as a reserve asset and has no plans to change this regulation. This announcement led to a significant drop in Bitcoin’s price.
As discussions around a potential Bitcoin standard continue, it remains to be seen how the US government will navigate the evolving landscape of cryptocurrency and its implications for the global economy. Stay informed by subscribing to our email alerts and following us on social media for the latest updates.