"Why did the US choose Bitcoin, which threatens the dollar hegemony? A solution to government debt"

It has been forecast that the Trump administration to be launched next year will use to repay government debt. The analysis is that the reason why President-elect Trump and the Republican Party want to stockpile , which could threaten the dollar's hegemony, as a strategic asset is to repay the rapidly growing government debt.

Lee Mi-sun, director of the Hashid Open Research Center, said this at the 2024 second-half CODE (CODE) roundtable held in Gangnam, Seoul on the 13th. The director predicted that the possibility of the passage of virtual asset-friendly Republican bills is high as the 'Red Wave' materializes, with the Republican Party taking control of both the White House and Congress after the US presidential and congressional elections. She said, "In particular, the FIT21 bill, which concentrates virtual asset regulatory authority on the CFTC and limits the authority of the SEC, and the resolution to invalidate the SEC's virtual asset custodian accounting guidelines SAB121 are likely to be reintroduced and passed in this Congress."



The director also expected that a bill for stockpiling as a strategic asset will be passed. Republican Senator Cynthia Lummis has introduced a bill requiring the Federal Reserve (Fed) to purchase 200,000 annually for the next 5 years, accumulating a total of 1 million . She focused on the background of the US pursuing the strategic asset in a way that could be unfavorable to the dollar's hegemony. The director said, "If the US starts buying , central banks around the world holding US Treasuries or dollars will reduce their dollars and buy ," and "Stockpiling as a strategic asset is a risky policy that could weaken the dollar's hegemony." She further analyzed that it seems to be a measure to respond to the rapidly growing government debt and the plans of BRICS countries such as China and Russia to issue gold-based currencies.