Is Trump Backing the Green?
With Donald Trump set to be inaugurated as US president on January 20, crypto advocates and industry analysts are weighing the role of crypto – specifically Bitcoin (BTC) – in the economy and whether Trump's pro-crypto policies will boost America. It erodes the position of the dollar or as a global reserve currency.
Speaking to Cointelegraph, Lee Bratcher – president of the Texas Blockchain Council, an industry advocacy group – said that Bitcoin will take the same place as gold and that the US dollar is not competitive.
A crypto industry advocate added that an overabundance of dollar-pegged stablecoins could extend the dominance of the US dollar. Bracher told Cointelegraph:
“If we want to maintain US dominance, we need the dollar to remain the world's reserve currency. For that to happen, we need stablecoins to expand because stablecoins give people around the world access to dollars.
In his December 2024 speech at the DealBook Summit in New York, Federal Reserve Chairman Jerome Powell compared Bitcoin to gold and concluded that BTC is not a direct competitor to the dollar.
Trump made a promise to Bitcoiners at the 2024 Bitcoin Conference. Source: Cointelegraph
Related: US Bitcoin Reserves Could Reduce National Debt by 35% by 2049: VanEck
Is President-elect Trump Going To Boost The US Dollar With Bitcoin?
President-elect Trump previously told Fox News' Maria Batiromo that the United States government could use Bitcoin to pay off the $35 trillion national debt.
Adam O'Brien, founder and CEO of financial services company BTC, told Cointelegraph that while Trump may use bitcoin to shore up the ailing US dollar in the short term, he won't abandon the dollar.
Current National Debt of the United States. Source: US Debt Watch
“I don't see President Trump having enough grounds to take the United States off the dollar,” O'Brien said. “Eventually, I think the USA will be free of the dollar. I don't believe Trump is going to bring this about.
Trump's policies depend on America's economic position
CryptoQuant founder and CEO Ki Young Joo recently said that the incoming president's bitcoin policies will depend on the state of the US economy and the strength of the dollar in global markets.
Ju argued that Trump is unlikely to establish a strategic reserve for Bitcoin and that if the United States and the dollar continue to show strength, it could dampen the prospects of pro-crypto policies.
In the year Despite a long period of depreciation since 1913, the US dollar has been strengthening against other currencies since October 2024. Source: TradingView
According to the CEO, individuals around the world still view the dollar as a safe haven and preferred instrument despite long-term inflation.
Trump's talk of “making America great again” and boosting America's economic standing are signs that the president is committed to strengthening the dollar, Zhu added.
Magazine: Bitcoiners are ‘all in' on Trump since Bitcoin '24, but it's getting dangerous
