If Trump establishes a BTC strategic reserve, it may 'self-destruct' the US dollar's hegemonic position.. a big gift to China and Russia

U.S. Quasi-President Trump shouted before the election to include BTC in the national strategic reserve, but Christian Catalini, co-founder and chief strategy officer of Lightspark and founder of the MIT Encryption Economics Lab, wrote an article on the 16th against it, believing that if Trump implements the BTC reserve strategy and fires Federal Reserve Chairman Powell, it may be the end of the US Federal Reserve System's leadership in global coin policy. (Synopsis: Metamask parent company: Trump's SECencryption lawsuit is expected to be dismissed or settled) (Background supplement: Xiao Feng: Trump's support for Crypto may allow China to restore the digital asset market) Lightspark, co-founder and chief strategy officer of Facebook's failed Stable Coin project Diem/Libra, and founder of the MIT Encryption Economics Lab Christian Catalini released a long article on the 16th, sharing his views on the US debt, the BTC strategic reserve proposal and the call for the replacement of Fed Chairman Powell. Christian Catalini argues that despite all the misleading propaganda, the United States is not on the verge of a debt crisis, and that the US debt-to-GDP ratio is indeed high, but this is the case in other major developed countries, and that reducing spending and improving government efficiency, whether through the Department of Government Efficiency (DOGE) or not, will bring significant benefits: If in AI, Cryptocurrency, Robotics, Biotechnology, The leading innovators in areas such as defense technology are American companies, and with our strong economy and disciplined spending, we can replicate the success of the early commercial Internet and continue to prosper. 3/ That doesn’t mean reducing spending and improving government efficiency—through @DOGE or otherwise—is a bad idea. Fiscal discipline, cutting outdated bureaucracy, and clearing obstacles to innovation and entrepreneurship would be extremely beneficial. — Christian Catalini (@ccatalini) November 15, 2024 Impact of the BTC Strategic Reserve Referring to the U.S. proposal to create a BTC strategic reserve, Christian Catalini said that in the best-case scenario, this shows that the U.S. is ready to lead the way in the cryptocurrency space, provide regulatory clarity, and position itself as Decentralized Finance , as it has been in TradFi in the past. But in the worst-case scenario, the creation of a BTC strategic reserve would show doubts about the sustainability of the dollar and the United States, which would be a bad strategic mistake and a gift to Russia and China, which have long tried to weaken the dollar's global dominance. Christian Catalini pointed out that the issuance reserve coin is an "excessive privilege" and that losing this status would mark the end of America's status as a global superpower, just as Spain, the Netherlands, France, and the United Kingdom have experienced before. Christian Catalini went on to express his views on Trump's possible expulsion of Fed Chairman Powell after taking office, saying that the dollar's strength as a global coin depends on the independence of Central Bank, and the chairman of the Fed can only be removed for serious misconduct, incompetence or dereliction of duty, not just policy differences. Therefore, Christian Catalini warned that appointing a future Fed chairman now and trying to remove Powell next January would undermine the Fed's credibility, weaken the dollar, and raise doubts about the ability of the United States to maintain its solvency, concluding: Combining the expulsion of Powell with the BTC Strategic Reserve could mark the beginning of the end of the US Federal Reserve's global coin policy leadership. If BTC becomes a global reserve coin, the United States will be the country that will lose the most, and unlike some who believe that "debt is paid down through BTC price increases", the United States will quickly find it difficult to finance debt during the transition period. Related Stories Gary Gensler Gives Farewell Speech? What encryption regulatory policy will the SEC take under Trump 2.0 Viewpoint" If the United States becomes BTCMining, AI center, UHV transformer will become Trump's new concept stock Trump's Truth Social and Musk X may merge! Strategic analysis of advantages and disadvantages 〈If Trump establishes BTC strategic reserves, "fear of self-destruction" US dollar hegemony.. A gift to China and Russia" This article was first published in BlockTempo "Dynamic Trend - The Most Influential Block Chain News Media".