Today (19th), in the Chinese state media Economic Daily, an article titled "Will BTC Become a US Reserve Asset?" discussing the possibility of the US including BTC in its reserves has sparked related discussions.
Policy Level
The article mentions that listing BTC as a strategic reserve asset would require a complex legislative process, involving the coordination and balancing of interests of multiple regulatory agencies. Additionally, traditional US financial institutions, conservative lawmakers, and interest groups skeptical of digital assets are likely to mount strong opposition, making implementation quite challenging.
Market and Regulatory Level
Furthermore, BTC prices often experience violent fluctuations, which is at odds with the strict stability requirements for national reserves. At the same time, the US cryptocurrency regulatory framework is not yet fully developed, and a more comprehensive legal structure would need to be established to incorporate BTC into the national reserve system.
US media also pointed out that BTC has never been a good inflation hedge - its relationship is more closely tied to speculative stocks, "rather than traditional inflation hedges like gold or inflation-linked bonds."
Is the US Dollar Hegemony Loosening?
Notably, the article suggests that the US's long-term abuse of the US dollar's status and its reckless currency overissuance have already shown severe consequences, and the pace of "de-dollarization" by many countries has accelerated.
The change in some Americans' attitude towards BTC is an attempt to maintain the loosening international status of the US dollar.
The skyrocketing BTC price seems to have brought some hope of recreating the process "from the collapse of the Bretton Woods system to the establishment of the petrodollar." However, BTC's inherent instability, if it becomes a strategic reserve asset, may pose greater challenges for regulators and could also alert other countries, exacerbating frictions in the international financial arena. Whether the US economy, which has been eroded by high inflation for days, can withstand the impact remains to be seen.
Chinese Netizens' Perspective
Regarding this news report, Chinese netizens are divided on whether BTC is suitable as a US reserve asset.
Some netizens believe this is a symbol of the US abandoning the US dollar hegemony, describing it as a "self-castration act"; however, there is also the view that "if the US dollar can become a foreign exchange reserve asset, why can't BTC? Both are artificial currencies."
Others take a mocking attitude: "The US is so stupid, I feel relieved." Some also point out that the continued rise in BTC prices benefits holders: "After breaking the previous high, holders have basically made a profit, so who has been harmed?"
