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With a bitcoin reserve in the US, other powers would rush to bolster their reserves.
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Trump’s plan has the potential to reshape the global economic order.
In the near future, a nation’s economic strength could be measured not only by its gold or dollar reserves, but by its ability to accumulate and safeguard its funds in bitcoin (BTC). This is the world into which Donald Trump could lead the United States, with implications that could resonate globally.
From gold to oil, every era has had its currency of power. And now, during Donald Trump’s term, which begins this Monday, January 20, could be bitcoin’s turnalthough that would unleash «a new arms race», this time in the digital economy. That is precisely what academics Huw Macartney, Erin McCracken and Robert Elliott from the University of Birmingham, one of the largest in England, warn.
These professors recently published a document in which they analyze the plan to create a bitcoin reserve in the United Stateshighlighting its profound geopolitical implications. “We are witnessing a transition towards a more multipolar economic system, where cryptocurrencies could be crucial in redefining power,” the researchers say. With countries like Japan, Russia and China already hoarding bitcoin, an announcement of a BTC reserve in the United States could spark a global race for this digital currency.
The possibility of a “bitcoin arms war,” as highlighted in the document, not only questions the future of the dollar as a global reserve currency, but also forces us to reimagine the global economic order in an era defined by digitalization and financial innovation.
«There’s potentially an even bigger idea at play.» [detrás de una reserva estratégica de bitcoin]and that is a significant change in the world economic order, where new actors and new forms of currency begin to take an increasingly important role.
Document released by academics from the University of Birmingham, England.
They add that the proposal for a BTC reserve is considered «potentially disruptive» to the global economic order, suggesting a change in how national wealth is conceived and protected, with bitcoin acting as a new ‘digital gold’. Furthermore, they warn that if bitcoin becomes a global reserve currency, «we could see a destabilization of the role of the dollar.»
A new world economic order?
Analysts at the University of Birmingham identify several interrelated trends that are challenging the dominance of the dollar. First, the rise of emerging economies such as Brazil, Russia, India, China and South Africa (BRICS+), which advocate a more multipolar economic system. This increasingly influential group of nations is reshaping the geopolitical landscape, challenging US supremacy and seeking a more prominent role in global governance.
The second trend that academics highlight is the decentralization of the financial system, which is highlighted by what they call «private money», a term that in reality refers to digital currencies like bitcoin, which operate outside the direct control of central banks. They then refer to the financial collapse of 2007-2008 as the catalyst for the birth of financial alternatives, which took shape with the creation of Satoshi Nakamoto, which is not subject to the manipulation of centralized monetary policies.
As part of the great change that is taking place, teachers mention “a notable transfer of infrastructure power from governments to private actors,” such as cryptocurrency exchanges and other service providers with digital assets. This represents a significant change from the old order where states had more direct control over monetary policies. Now, with the legitimization of cryptocurrency exchanges and providers, these private players are taking on a crucial role in shaping public policy through their innovative financial services.
This movement towards a more multipolar world order implies a redistribution of economic power, according to the document. In this context, it is suggested that A US bitcoin reserve should be seen not just as an isolated policy, but as part of a transformation broader towards a new economic order where bitcoin could have a significant impact. This evolution challenges states to reconsider their position in a world where monetary sovereignty could be redefined by technology and financial innovation.
Ultimately, if Donald Trump’s vision for a strategic bitcoin reserve comes to fruition, the world could be on the brink of a new chapter in global economic history. This would not just be a change in a country’s monetary policy, but the beginning of an era where economic power is reconfigured, challenging the hegemony of the dollar and embracing the disruptive potential of Bitcoin.
With Trump keeping his promise, the United States could lead the transition to a more decentralized and multipolar financial system, where wealth and power could be measured by the amount of bitcoin each nation owns. Only time will tell whether a bitcoin “arms race” that academics warn changes the course of economic history or is just one episode in a larger narrative.