Compilation: Jinse Finance
Note: Scott Bessent, the nominee for US Treasury Secretary, has proposed the concept of "Global Economic Reordering".
Recently, the Bitcoin Policy Institute has prepared a report for Scott Bessent titled "A "Global Economic Reordering:" US-China Competition and Bitcoin as Tool of US Statecraft", proposing the use of Bit to consolidate the United States' financial dominance.
The following is a summary of the report:
The global monetary order is facing increasing pressure. Fiscal instability, growing debt burdens, and escalating geopolitical competition are reshaping the foundations of international finance. Competitors led by China are taking strategic steps to reduce reliance on the US dollar-dominated system, establishing alternative financial networks, and leveraging loopholes in the existing order to expand their influence. Through measures such as issuing US dollar-denominated bonds, building gold reserves, and advancing digital payment systems, China is attempting to challenge US dominance and reconfigure global capital flows to its advantage. These developments pose both a clear threat and a strategic opportunity for the United States.
To maintain a leading position in the increasingly competitive environment, the United States must adopt a forward-looking strategy to redefine the terms of global economic engagement. This strategy must integrate monetary, technological, industrial, and geopolitical policies to address structural vulnerabilities, strengthen the resilience of the US economy, and counter the ambitions of competing powers.
The core of this potential geoeconomic strategy is an updated monetary system - "Bretton Woods 3.0" - that combines the stability of traditional reserve assets like gold and US Treasuries with emerging financial tools like Bit and US dollar-backed stablecoins. By leveraging these assets, the United States can modernize its financial architecture, stabilize its fiscal position, and reinforce trust in the dollar system. Instruments such as long-term bonds, strategic gold revaluation, and expanded swap lines will bind allies more tightly to the US-centered financial network, while creating buffers to prevent fragmentation. Domestically, revitalizing the US industrial base, directing credit to strategically significant sectors, and achieving energy independence are crucial to rebuilding economic strength. This effort must move away from speculative financial practices and excessive reliance on short-term liquidity. Instead, realigning credit allocation through mechanisms like deregulation, strategic wealth funds, and financial sector reform will ensure that investment drives long-term economic growth, technological innovation, and supply chain resilience.
Internationally, the United States can deploy its financial and technological advantages to forge a durable geoeconomic coalition. Prioritizing US leadership in areas like artificial intelligence, energy systems, and digital infrastructure will provide powerful incentives for allies. These technologies are not only critical for global competitiveness but also essential for strengthening the cohesion of the US-led economic system, offering clear cooperative benefits to allies while denying adversaries the tools needed to challenge American influence.
Bit is often referred to as "digital gold," and it provides the United States with a strategic advantage that aligns with this strategy. Its scarcity, portability, and decentralization make it an ideal complement to traditional reserve assets like gold. By establishing a Strategic Bit Reserve (SBR), the United States can diversify its national balance sheet, hedge against systemic financial risks, and ensure an asymmetric advantage over competitors.
Bit's adoption as "digital gold" by institutional investors, corporations, and even nation-states highlights its utility in the digital age. The United States is well-positioned to leverage this asset, as we hold the most Bit (approximately 207,000 Bit) among other countries, have the largest mining share (>35%), and host the most secure and popular exchanges.
The combination of Bit and US dollar-backed stablecoins can enhance the global reach of the US dollar network, particularly in emerging markets, where China's digital authoritarianism is seeking traction. Supporting these tools will place the United States at the forefront of financial innovation while strengthening the global dominance of the dollar system.
This strategy is not just about financial competition; it is a blueprint for securing economic leadership, stabilizing fiscal vulnerabilities, and maintaining technological advantages over near-peer competitors. By coordinating monetary reform with domestic industrial policy and international economic policy, the United States can shape the contours of a reimagined global order on terms favorable to our national security and sustained prosperity.
In recent years, central banks' purchases of gold have been a closely watched phenomenon. However, some countries have also started to turn to Bit, a move that is not as obvious. Gulf states and others may have already begun diversifying into Bit. The election of Donald Trump and his pro-Bit rhetoric may have fired the starting gun for a global race for sovereign and institutional Bit adoption. While we have entered this race, the United States still risks falling behind.
The risks could not be higher. Inaction could allow adversaries seeking to undermine the foundations of the US economy and geopolitical power to seize the initiative. By taking bold, comprehensive measures - grounded in modernized reserve assets, industrial revitalization, and technological leadership - the United States can solidify its position as the bedrock of global stability and prosperity in the 21st century.
