Bitcoin: Establishing national Bitcoin currencyBTCHaider Rafique is the global managing partner of government and investor relationships at OKX, a crypto exchange.
Rafique tells Cointelegraph 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.
The question was: “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 stated that the price of metals was kept below $60,000, which is how it has 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 said Cointelegraph that the crypto market could be a source of a widespread contagion with macroeconomic implications.
“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 in search of safe assets, such as the Swiss Franc or gold.
As markets react to the global financial shift, 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
