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 any government holding significant portions of the BTC supply It could influence prices by selling its BTC holdings, thus disrupting BTC’s fundamental proposition as neutral decentralized money.
“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.”
This was the case in 2024 with Germany. unloaded 50,000 BTCRafique claimed that this kept the prices below $60,000.
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 The standard unit of account is the monetary value.
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 warned that this could cause shockwaves throughout the financial system, as investors seek safe haven assets like gold and the Swiss Franc.
As markets react to global financial shifts, investors will also liquidate risky assets. This would create a cascade that could lead to an important crash.
Magazine: US risks being ‘front run’ on Bitcoin reserve by other nations: Samson Mow
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Source: cointelegraph.com
