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Incoming U.S. President Donald Trump is expected to remain firm in his commitment to preserving the dollar as the global reserve currency, leaving little room for alternative assets like Bitcoin, according to a recent analysis by TD Cowen.
Trump’s Dollar-First Policy
Trump’s recent statements emphasize his focus on ensuring the dollar’s dominance in international trade and finance. Over the weekend, he issued threats of 100% tariffs on BRICS nations if they proceed with plans for a new currency or alternatives to the dollar. These actions underscore his unwillingness to dilute the dollar’s supremacy.
TD Cowen analysts noted that the concept of a Bitcoin reserve conflicts with Trump’s vision of U.S. strength, which he closely ties to the dollar’s global role. They added that Trump likely perceives challenges to the dollar as challenges to American military and economic power.
Bitcoin Reserve Advocacy Meets Resistance
Advocates for a Bitcoin reserve, such as the Bitcoin Policy Center, argue that holding digital assets could bolster the U.S.’s leadership in global finance. However, TD Cowen analysts find it improbable that Trump would support this perspective, as it might be interpreted as undermining the dollar’s primacy.
While Trump has occasionally referenced Bitcoin in public discussions, such mentions are often seen as attention-grabbing rather than indicative of policy shifts. Analysts suggest that promoting Bitcoin as a reserve asset in a Trump administration would require reframing the argument, focusing less on dollar alternatives and more on complementary innovation or financial leadership.
The debate over Bitcoin as a reserve asset may persist in the coming years. Proponents face significant challenges under a Trump-led administration but may find avenues for engagement by avoiding rhetoric that positions Bitcoin as a hedge against the dollar’s decline. Instead, framing the conversation around technological advancement and strategic financial positioning could provide more traction.
For now, however, Trump’s dollar-centric policies appear set to maintain their course, keeping Bitcoin’s role in U.S. monetary policy on the sidelines.
