Who’s running in Trump’s race to make US a ‘Bitcoin superpower?’

US President Donald Trump is determined to turn the United States into a thriving nation. “Bitcoin superpower,” The question still remains, however, as to whom he will be competing against. 

Speaking at Blockwork’s Digital Asset Summit He said this on the 20th of March to an audience of executives in the crypto-industry and other observers. “Together we will make America the undisputed Bitcoin superpower and the crypto capital of the world.”

Trump’s White House has made a number of executive orders that have benefited the US crypto industry, such as the creation of an. “strategic Bitcoin reserve” — a move advocates regard as a key metric for Bitcoin adoption. 

Many other countries including US major trade partners are not yet ready to accept Bitcoin as their reserve currency, raising the question who is the US competing with to be a “Bitcoin superpower.”

Bitcoin is not a competition between US trade partners, allies and rivals

Comparing the US to other major geopolitical and trade rivals as well as its main trading partners, it is clear that the US leads the way in adopting Bitcoin. The European Union, China or Canada are not among the countries that have made such drastic moves to institutionalize the currency.

China, which is by far the largest US trade partner, and the most significant geopolitical adversary, took a very strong position against this asset. At first, it banned the currency outright, but then softened its stance a little. China allows Bitcoin mining but does not allow its use.

The government, in general, has concentrated its efforts on the development of a digital retail currency from the central bank. This is the digital yuan. 

In May 2023 the European Union (another major US trading partner) passed its Markets in Crypto-Assets regulation framework, and member states will implement it fully by 2024. 

The EU has passed more concrete laws than the US, but it does not offer the same level of preferential treatment to industry as the US parallel legislation that is currently being debated in Congress.

This year’s growth in crypto users is likely to stagnate, with the popularity of cryptocurrency among the EU’s wealthiest economies being low. There is no Bitcoin reserve in any member state.

Crypto adoption is not universal, and even the crypto-friendly Switzerland has its limits. In 2024, US services exports to Switzerland will reach $52,4 Billion. Martin Schlegel of the Swiss National Bank said that Bitcoin is not suitable to be a currency reserve, citing concerns about stability, security and liquidity.

Joachim Nagel of the German central bank has rejected the idea of creating a Bitcoin reserves, and Mark Carney of Canada has also criticized Bitcoin for being an inferior form of money. 

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The Bank of Korea has stated that BTC does not comply with IMF standards and is too volatile. 

Russia has, on its side, allowed the use of crypto in international settlements as a way to bypass sanctions. A three-year trial is being prepared by the central bank to let select investors trade in crypto. Although the Duma still hasn’t formed one, some legal experts in Russia have suggested creating a crypto-fund consisting of assets that were seized during criminal proceedings.

Criticism and advocates are vilified “Strategic Bitcoin Reserve” 

The strategic importance of the US Bitcoin Reserve and its long-term beneficiaries have been questioned by critics. 

Cornell professor Eswar Pradosad, “This is neither a strategic nor sensible idea but instead benefits bitcoin holders while sticking US taxpayers with the bill and exposing the government to financial risks. The US government would become a key driver of bitcoin’s price on the way up and down.”

TLDR news has noted that the purpose of strategic reserves is to store commodities that are deemed critical to a nation’s economic function. They can be created by governments to help stabilize prices of high-demand goods. US oil reserves and grains are strategic, while China has its own strategic stockpile of pork. 

Bitcoiners don’t really want to see the price of Bitcoin remain constant, nor do they have a great desire for Americans to buy Bitcoin. 

George Selgin is a senior Fellow and Director Emeritus of the Cato Institute’s Center for Monetary and Financial Alternatives. He said the stated goal for the reserve to help pay down the US national debt, was unrealistic.

“The plan’s million-coin stash would have to more than double in value during its 20-year holding period just to compensate for the plan’s implicit interest cost. Second, the stockpile must eventually be sold to realize the gains, and you can bet that the same bitcoin holders who have managed to get the government to keep the bitcoin it already has will cry foul if it ever tries to sell any new coins it acquires,” He stated.

It is not a digital Fort Knox, as claimed. “just as dubious” He said that the gold in the dollars has not been able to maintain the value since Richard Nixon became president and took the dollar off the gold standard. 

The reserve has been attacked by Bitcoiners as well. Charles Edwards of Capriole Investments and the Bitcoin hedge fund, criticised the reserve. “hold only” Policy of the Reserve, Calling It “disappointing” A “pig in lipstick.”

Even the reserve proved to be a non starter for Bitcoin, as price movement remained relatively stable even after Trump’s executive order was signed on March 6. 

As of now, no other nation is in the race. Things could quickly change. The right-wing parties that support the creation of Bitcoin reserve have been On the rise: European Elections 

Brazil is a large economy located in the Western Hemisphere. weighing the possibility of a Bitcoin reserve. 

As a result, the US Bitcoin reserves allows Treasury to acquire Bitcoins as long it is able to do so on a budget-neutral basis that does not cost taxpayers. This reserve’s full influence and impact on Bitcoin adoption may not yet be fully felt. 

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