President-elect Donald Trump will be inaugurated today as the 47th president of the United States, an administration that will focus on a MAGA government (Make America Great Again o Make America Great Again, Trump’s election slogan). Therefore, a more severe government is predicted, which will put the entire world in a state of extreme tension.
This change of power occurs in a complex global context, in which China participates in a strategic competition with the United States; Russia invaded Ukraine, while North Korea and Iran are working closely to challenge American hegemony. Starting today, his first day in office, he is expected to drive state affairs through about 100 executive orders on the economy, trade, immigration, energy, foreign policy and also on Bitcoin.
The eyes of the world are focused today on the White House and also on what Trump will say about Bitcoin, a decentralized financial network that could be the skeleton of the new digital era, according to a deep analysis of Bitcoin Policy Institute. A document signed by Matthew Pines, director of strategy at the institute, proposes that the United States adopt policies favorable to the pioneering digital currency to counteract global imbalances and maintain its economic and geopolitical leadership in a rapidly changing world.
«At the center of this possible geoeconomic strategy is a renewed monetary system – a “Bretton Woods 3.0”– which combines the stability of traditional reserve assets, such as gold and US Treasuries, with emerging financial tools such as bitcoin and dollar-backed stablecoins. By leveraging these assets, the United States can modernize its financial architecture, stabilize its fiscal position, and strengthen confidence in the dollar system.”
Matthew Pines, Chief Strategy Officer at the Bitcoin Policy Institute.
The paper highlights several challenges facing the current geoeconomic system: structural imbalances, unsustainable debt, and intensified geopolitical competition. In particular, it points to the dependence of the US on debt-financed consumption and China on fixed asset investment, creating significant vulnerabilities. This is because the US faces instabilities in the treasury bond market, deindustrialization and growing fiscal tensions, aggravated by cyber risks.
Proposals from the Bitcoin Policy Institute analysis:
- Restructuring of the global monetary order: A hybrid approach with Treasury bonds, gold, and strategic swaps to manage the yield curve, together with internal reindustrialization and credit allocation policies.
- Bitcoin as a tool of State: He proposes using Bitcoin to expand the dollar network, increase confidence in bond markets, and reinforce US democratic values.
- Bitcoin Strategic Reserve: To diversify assets and manage liquidity during debt monetization events.
A Bitcoin strategy for the United States
The addition of Bitcoin could strengthen the dominance of the dollar, increase demand for US government debt and stabilize the Treasury market, offering a shield against systemic risks. In that sense, the Bitcoin Policy Institute concludes that Integrating Bitcoin into US strategy would be crucial to maintaining and expanding its influence in the 21st century.
So he suggests that, if Bretton Woods was the architecture of the post-war economy, Trump’s vision for Bitcoin could be the skeleton of the new digital age.
What Matthew suggests in the report is that the United States restructure the global monetary order. To achieve this, it proposes a hybrid approach that combines treasury bonds and gold, with strategic swaps to control the yield curve, together with internal policies for reindustrialization and strategic credit allocation.
In the new order that would emerge, Bitcoin would play a crucial role as part of the strategy. What is proposed is that the pioneering digital currency could be used as a state tool to expand the dollar network, increase confidence in treasury bond markets, and reinforce U.S. democratic values.
Furthermore, it is suggested that Bitcoin could serve as a counterweight to the initiatives of global adversaries seeking to establish a new monetary order based on gold and central bank digital currencies (CBDC). And it highlights the importance of a Bitcoin Strategic Reserve, which would allow the US to diversify its assets and absorb liquidity during debt monetization events without distorting other markets.
The document addresses how Bitcoin and stablecoins could reinforce the dominance of the dollarincrease demand for US government debt and stabilize the treasury market, offering protection against systemic risks.
Ultimately, the inauguration of Donald Trump as the 47th president of the United States marks the beginning of a new political era, but it could also be the starting point for a radical transformation in the global financial architecture. With the world’s eyes focused on his speech and the possible policies that Trump would approve starting today on Bitcoin, Expectation grows about how digital currency could redefine economic power and geopolitics of the United States in a digitalized and constantly changing world.
The proposal of a “Bretton Woods 3.0” by the Bitcoin Policy Institute suggests a path towards a more robust and adaptable monetary system, where Bitcoin could appear as a strategic instrument for American stability and leadership in an increasingly complex global scenario.
