Bitcoin national currency (BTCHaider Rafique is the global managing partner of government and investor relationships at OKX, a crypto exchange.
Rafique, in a statement to Cointelegraph, said that he would not support any kind of government holding significant portions of the BTC supply Could manipulate the price by dumping its holdings on the market. This would disrupt the BTC’s core proposition as neutral and decentralized currency.
“He asked: “What happens in a few years if a new administration decides this was a bad idea?” Rafique added:
“Despite recent bipartisan support for crypto, it is essential to remember that administrative policies can change quickly. As circumstances change over time, the concentration of large amounts of BTC on a country’s balance sheet could represent a liquidation risk.”
In 2024, the German government set an example in this regard. unloaded 50,000 BTCRafique stated that the price of autos was kept below $60,000, a level which he said had been suppressed.
Many Bitcoin supporters continue to think about the Bitcoin Strategic Reserve. They believe that creating a BTC Treasury at the level of a country-state is a next step. making Bitcoin the global reserve currency Standard monetary units of account.
Related: US lawmakers tap Saylor, Lee to advance Bitcoin reserve bill
Risques for the US Dollar and Other Financial Markets
Establishing a Bitcoin strategic reserve Rafique, a Cointelegraph reporter, said that a crypto-currency contagion could have macroeconomic consequences far beyond the cryptocurrency markets.
“The most significant macroeconomic implication would be a loss of confidence in the dollar,” “He said”
He said that building a Bitcoin Reserve signals the weakening of the US Dollar, the currency which is the foundation for the global economy. The US dollar cannot maintain its value based on the strength of the economic system alone.
Rafique stated that the US Dollar could be a shock to the whole financial system if investors fled the US Dollar for assets of safety such as the Swiss franc or gold.
He concluded that investors would dump assets with high risk, leading to a cascade across the financial markets, which would lead to a crash as markets reacted in response to a seismic change in global finance.
Magazine: US risks being ‘front run’ on Bitcoin reserve by other nations: Samson Mow
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Source: cointelegraph.com
