Dec 3 2024: U.S. President-elect Donald Trump is expected to oppose the idea of establishing a Bitcoin reserve for the United States, favoring the dollar’s role as the world’s dominant reserve currency, TD Cowen analysts said.
Recent statements by Trump underscore his commitment to maintaining the dollar’s supremacy. Over the weekend, he warned the BRICS alliance—consisting of nations like China, Russia, India, and Brazil—of 100% tariffs if they pursue alternatives to the dollar in global trade or establish a new currency.
While some advocates argue that a Bitcoin reserve could serve as a hedge against a declining dollar, TD Cowen analysts believe such a proposal clashes with Trump’s focus on preserving U.S. economic and military influence. They emphasize that Trump views the dollar’s global dominance as essential to American strength, leaving little room for alternatives like Bitcoin.
Proponents, including groups like the Bitcoin Policy Center, argue that digital assets like Bitcoin could help ensure the U.S. maintains its leadership in global finance. However, analysts suggest Trump is unlikely to endorse a move perceived as diminishing the dollar’s role.
Though Trump may occasionally mention Bitcoin in public or on social media, TD Cowen predicts he will not allocate political capital to support the concept of a Bitcoin reserve. Advocates may need to reframe the narrative to gain traction, possibly steering the debate away from viewing Bitcoin as a hedge against the dollar’s decline.
