Source: a16z crypto Editorial "Make the United States a crypto capital: What to do"

Author: Christian Catalini, co-founded by Lightspark and MIT Crypto Economic Lab Man

Translated by: 0xjs@Golden Finance

The United States benefits from what economists call "over privilege." As the issuing country of the world's reserve currency, it can borrow its own currency and support new expenditures. However, that doesn't mean it can simply print money – U.S. Treasuries still have to attract buyers in the open market. Fortunately, US debt is widely regarded as the safest asset in the world and ensures strong demand, especially during the crisis of investors scrambling to seek security assets.

Who profits from such excessive privileges? First are the U.S. decision makers who gain additional flexibility in fiscal and monetary decision-making. Next is banks – they are at the center of global financial flows, collect fees and make an impact. But who is the real winner? American companies and multinational corporations, who are able to conduct most of their business in their own currencies and can issue bonds and borrow more cheaply than foreign competitors. Let’s not forget consumers who enjoy stronger purchasing power, lower borrowing costs, and more affordable mortgages and loans.

What is the result? The United States can borrow less costs, maintain larger deficits for a longer time, and bear the economic impact that may be paralyzed. However, this high privilege is not inevitable -it must be obtained by hard work. This depends on the economic, financial and geographical strength of the United States. In the final analysis, the entire system depends on a key factor: trust. Trust the United States, governance and army. The most important thing is that the dollar is still the safest place in the world in the end.

All of these have a direct impact on the Bitcoin reserve plan proposed by Trump. The view that supporters are in the long -term strategic role of Bitcoin are not wrong -they are just too early. Today, the real opportunity lies not simply hoarding Bitcoin; it lies in intentionally shaping the integration of Bitcoin with the global financial system to strengthen rather than undermine the U.S. economic leadership. This means using dollar stablecoins and Bitcoin to ensure that the next era of financial infrastructure is the era led by the United States – not the era of passive responses in the United States.

Before discussing this issue, let's analyze the role of reserve currency and its control.

The rise and fall of reserve currencies

History is clear: reserve currencies belong to world economic and geopolitical leaders—until they are no longer a leadership role. At its peak, it dominated the rules that determine trade, finance and military power, providing global credibility and trust for its currencies. From the Portuguese real in the 15th century to the US dollar in the 20th century, the reserve currency issuers have shaped other markets and institutions that have followed suit.

But no currency canAlways occupy the throne. Excessive expansion -whether through war, expensive expansion or unsustainable social commitments -will eventually weaken credibility. Spain's real was once backed by a large reserve of silver in Latin America, but as Spain's growing debt and economic mismanagement weakened its dominance, the real also depreciated. The Dutch guil also depreciated as the ruthless war exhausted the Netherlands' resources. The French franc dominated the eighteenth and early nineteenth centuries but depreciated under pressure from revolution, Napoleonic wars and financial mismanagement. And the pound, once the cornerstone of global finance, collapsed under the weight of post-war debt and the rise of US industrial dominance.

The lesson is simple: economic and military strength can create reserve currencies, but financial stability and institutional leadership are the fundamentals for maintaining reserve currencies. Losing this foundation, the privilege disappeared.

Is the era of dominance of the US dollar coming to an end?

The answer to this question depends on where you start the timing. The US dollar consolidated its position as the world’s reserve currency through the Bretton Woods Agreement before and after World War II, even earlier, as the United States became the world’s major creditor after World War I. In any case, the dollar has dominated for more than 80 years. From the perspective of historical standards, this is a long process, but it is not unprecedented -the pound occupies a dominant position for about a century before the decline.

Today, some people think that peace under the rule of the United States is disintegrated. Rapid developments in artificial intelligence, robotics, electric vehicles and advanced manufacturing are heralding a transfer of power. In addition, we also master major control of key minerals that we need in the future. Other warning signals are also appearing. Marc Andreessen calls DeepSeek’s R1 launch an AI Sputnik moment in the United States—a reminder that America’s leadership in emerging technologies is no longer guaranteed. Meanwhile, the expanding military presence in the air, maritime and cyberspace, and its growing economic influence raise an urgent question: Is the dominance of the dollar under threat?

debt accounts for GDP percentage. Source: International Monetary Fund

Short answer: Not yet. Despite rising debt and false propaganda predicts that the United States is about to collapse, the United States is not on the verge of fiscal crisis. Yes, the ratio of debt to GDP is very high, especially after the epidemic expenditure, but it is still consistent with other major economies. More importantly, global trade is still mainly based on the US dollar. The gap between the RMB in some international settlement is reduced to the euro, but it is far from replacing the US dollar.

The real problem is not whether the dollar will collapse. It hasn't collapsed yet. The real concern is whether the United States can maintain its leading position in innovation and economic strength. If trust in U.S. institutions decreases, orIn the key industry, the United States has lost its competitive advantage, and the cracks of the US dollar may begin to appear. Those who are short -term US dollars are not just market speculators -they are also geopolitical opponents in the United States.

This does not mean that fiscal discipline is irrelevant. It is extremely important. Reducing expenditure and improving efficiency by efficiency or other methods will be a popular change. Streamlining outdated bureaucracy, clearing entrepreneurial barriers, promoting innovation and competition will not only reduce wasteful public spending; it will also strengthen the economy and consolidate the dollar's status.

Combined with the United States' continued breakthroughs in artificial intelligence, encryption, robotics, biotechnology and defense technology, this approach may reflect how the United States regulates and commercializes the Internet—to drive a new round of economic Growth and ensure that the US dollar is still an indisputable reserve currency in the world.

Can Bitcoin reserves consolidate U.S. financial leadership?

The following discusses the idea of ​​Bitcoin strategic reserves. Unlike traditional reserve assets, Bitcoin lacks historical support from institutional and geopolitical power. But that's the key. It represents a new paradigm: no sponsor, no single point of failure, completely globalized, neutral. Bitcoin provides an alternative that is not bound by the traditional financial system.

While many people think Bitcoin is a breakthrough in computer science, its true innovation is even more profound: it redefines the way economic activity is coordinated and the way value flows across borders. As a decentralized, trustless system (and only has an anonymous creator who has no control), the Bitcoin blockchain can act as a neutral universal ledger—a separate framework for recording global credit. and debit without relying on central banks, financial institutions, alliances or other intermediaries. This is not only a technological advancement, but also a structural change in the way global finance works coordinatedly.

This neutrality makes Bitcoin have unique resistance and can resist the debt crisis and entanglement that has disintegrated the fiat currency in history. Unlike traditional monetary systems closely related to harmony and geopolitical changes, Bitcoin is not subject to any single control. This also makes it possible to become a common economic language among countries, which would otherwise resist financial integration or completely reject unified ledger systems. For example, the United States and the unlikely to trust each other’s payment channels—especially as financial sanctions become increasingly powerful tools for economic warfare.

So how will these fragmented systems interact? Bitcoin can act as a bridge: a global, trust-minimized settlement layer that connects originally competing economic fields. When this reality becomes a reality, it is undoubtedly meaningful for the United States to hold strategic Bitcoin reserves.

But we haven't done that yet. To move Bitcoin beyond investment assets, critical infrastructure must be developed to ensure scalability, a modern compliance framework, and seamless connection with fiat currencies for mainstream adoption.

Bitcoin reserve supportersThere is nothing wrong with its potential long-term strategic role. They just prematurely. Let's reveal the reasons.

Why keep strategic reserves?

The reasons for the strategic reserves of various countries are simple: In crisis, acquisition is more important than prices. Oil is a typical example – although futures markets allow price hedging, when supply chains are interrupted by war, geopolitical or other disturbances, no financial project can replace physical reserves at hand.

The same logic is also applicable to other necessities -natural gas, grains, medical supplies, and increasingly important raw materials. With the transformation of the world to battery -driven technology, countries have begun to reserve lithium, nickel, cobalt and manganese to cope with future shortages.

Then the currency. Holding US dollar reserves with large amounts of foreign debt (usually denominated in US dollars) to promote debt rollout and prevent currency crises. But the key difference is that there is currently no one who takes on a lot of debt with Bitcoin—at least not yet.

Bitcoin supporters believe that Bitcoin’s long-term price movements make it a clear reserve asset. If the United States buys now and continues to adopt, the value of investment may increase exponentially. However, this approach is more in line with the strategy of the sovereign wealth fund, which focuses on return on capital rather than reserves that are critical to security. It is more suitable for those with rich resources but unbalanced economy, seeking asymmetric financial profits, or those with weak central banks and hope that Bitcoin can stabilize its balance sheet.

So, where will the United States go? The United States does not need Bitcoin to run its economy at this moment, and although President Trump recently announced the establishment of a sovereign wealth fund, cryptocurrency investment may still be left primarily to the private market for effective allocation. The most powerful reason for Bitcoin reserves is not economic needs, but strategic positioning. Holding reserves may indicate that the U.S. is determined to lead cryptocurrencies, establish a clear regulatory framework, and position itself as the global hub of DeFi, just as it has dominated traditional finance for decades. At this stage, however, the cost of this move may outweigh the benefits.

Why Bitcoin reserves may backfire

In addition to the logistical challenges of accumulating and securing Bitcoin reserves, the bigger problem is cognitive issues, and the cost may be high. In the worst case, this may indicate the lack of confidence in maintaining debt in the United States. This is a strategic mistake. It gives victory to Russia and geographical opponents. These two have tried to weaken the US dollar for a long time.

Russia has not only promoted the US dollar abroad, but its support for the media has been promoting the stability of the US dollar and predicting the upcoming depreciation of the US dollar for many years. At the same time, a more direct way has been adopted to expand the coverage of the RMB and the infrastructure of digital payment -including digital RMB that focuses on the focus -to challenge the financial system led by the United States, especially in the field of cross -border trade and payment. In global finance, perception is important. Expectations not only reflect reality, but also help shape reality.

IfThe United States began to hoard Bitcoin on a large scale, and the market may interpret it as a means to hedge the US dollar. This view alone could trigger investors to sell the dollar or reconfigure capital, thus undermining the status the United States wants to protect. In the global financial sector, belief driving behavior. If there are enough investors to start doubting the stability of the US dollar, their collective actions will turn this suspicion into reality.

U.S. currency relies on the Federal Reserve's ability to manage interest rates and inflation. Holding Bitcoin reserves may send a contradictory message: If you have confidence in your own economic tools, why store assets that the Fed cannot control?

Can Bitcoin reserves alone trigger the dollar crisis? Very unlikely. But it may not strengthen the system -and in the field of geography and financial, non -persistence errors are often the highest.

The best way to lead

the United States to reduce debt to GDP ratio is not speculative, but fiscal discipline and economic growth. History shows that reserve currencies will not exist forever, and those depreciated currencies are depreciated due to poor economic management and excessive expansion. To avoid following the footsteps of the Spanish real, Dutch guild, French Rift and British Pound, the United States must focus on sustainable economic strength rather than risky financial bets.

If Bitcoin becomes the global reserve currency, the United States will lose the most. The transition from US dollar dominance to a Bitcoin-based system has not been smooth sailing. Some people believe that Bitcoin appreciation can help the United States "pay" debt, but the reality is much crueler. This shift will make it more difficult for the United States to finance its debt and maintain its economic reach.

Although many people think that Bitcoin cannot be a true medium of transactions and accountancy units, history shows that this is not the case. Gold and silver are not only valuable because of scarcity, but are also divisible, durable, and portable, making them effective currencies—even without sovereign support or issuance, just like Bitcoin today. Similarly, early banknotes are not forced to be compulsory trading media. It evolved from commercial promissory notes and certificates of deposit (representing an already trustworthy store of value) before being widely accepted as a medium of transactions.

Fiat currencies are often regarded as an exception to this model—when declared as fiat currencies, they immediately become mediums of exchange and subsequently means of store of value. But this is too simplified to reality. The power of fiat currency is not only because of laws and regulations, but also because of the ability to impose taxation and fulfill debt obligations through this power. Currency with support with strong tax base has inherent demand, because enterprises and individuals need it to repay debt. This taxation right allows legal currency to maintain its value even without direct commodity support.

But even the fiat currency system was not established from scratch. Historically, their credibility was supported by commodities that people already trust, the most famous of which is gold. Paper money is recognized precisely because it was once exchanged for gold or silver. Only in this letterAfter being reinforced for decades, the transition to pure legal currency became feasible.

Bitcoin has also taken a similar trajectory. Today, it is mainly regarded as a means of store of value—highly volatile, but increasingly as digital gold. However, as the scope of adoption expands and the financial infrastructure matures, its role as a medium of exchange may follow. History shows that once an asset is widely recognized as a reliable means of store of value, the transition to an effective currency is a natural process.

This is a major challenge for the United States. Despite some leverage, Bitcoin’s operation is largely unavailable to the traditional control of currencies by countries. If it becomes a global medium of transactions, the United States will face a grim reality—the reserve currency status will not be easily abandoned or shared.

This does not mean that the United States should crack down on or ignore Bitcoin – if it is really to be said, it should actively participate and shape its role in the financial system. But buying and holding Bitcoin just for appreciation is not the answer. The real opportunity is greater—but also more challenging: pushing Bitcoin into the global financial system to strengthen rather than undermine the U.S. economic leadership.

Bitcoin Platform for the United States

Bitcoin is the most mature cryptocurrency with an unparalleled record in security and decentralization. This makes it the most powerful candidate for mainstream adoption, first as a store of value and ultimately as a medium of exchange.

For many, Bitcoin’s appeal lies in its decentralization and scarcity—which are driving Bitcoin’s price rise as adoption increases. But this is just a narrow view. Although the value of Bitcoin will continue to increase with its popularity, the real long -term opportunities in the United States are not only in holding Bitcoin, but also to actively shape Bitcoin into the global financial system and build itself into the international center of Bitcoin Finance.

Simply buying and holding Bitcoin is a completely feasible strategy for everyone outside the United States - it can both accelerate the popularity of Bitcoin and gain room for financial upward. But the United States is more risky and must be done more. It needs to adopt different methods -not only to maintain its status as a world reserve currency issuer, but also to promote the large -scale financial innovation of the US dollar "platform".

The key precedent here is the Internet. It has changed the economy by shifting information exchange from a proprietary network to an open network. Today, as the financial track shifts toward more open and decentralized infrastructure, the United States faces similar options as before the advent of the Internet. Just as those companies that embrace the openness of the Internet are booming, and those boycott companies eventually become irrelevant, the United States' attitude towards this transformation will determine whether it can maintain its global financial influence or give the site to other.

The first pillar of a more ambitious, future-oriented strategy is to see Bitcoin as a network, not just an asset. With openness, no license networkIn order to promote new financial infrastructure, existing companies must be willing to give up some control. By doing so, however, the United States can unlock significant new opportunities. History shows that those who adapt to disruptive technology will consolidate their position, while those who resist disruptive technology will eventually fail.

The second key pillar of Bitcoin is to accelerate the adoption of US dollar stablecoins. Under proper regulation, stablecoins can strengthen public-private partnerships that have supported U.S. financial dominance for more than a century. Instead of weakening the hegemony of the US dollar, stablecoins will enhance the hegemony of the US dollar, expand the influence of the US dollar, enhance its utility, and ensure its importance in the digital economy. Furthermore, they offer more agile and flexible solutions than slow-moving, bureaucratic central bank digital currencies or unclearly defined unified ledger solutions such as the Bank for International Settlements’ “Financial Internet”.

But not everyone is willing to adopt a dollar stablecoin or operate entirely within the U.S. regulatory framework. Bitcoin plays a key strategic role here—acting as a bridge between the core dollar platform and non-geo-alliance economies. In this context, Bitcoin can act as neutral networks and assets, promote the flow of capital, and strengthen the core position of the United States in global finance, thereby preventing them from concession to alternating currencies such as RMB. Even if it becomes a pressure relief valve for seeking alternatives to dollar hegemony, Bitcoin’s decentralized, open nature ensures it is closer to the economic and social values ​​of the United States than to those of a dictatorial regime.

If the United States successfully implements this strategy, it will become the center of Bitcoin financial activities and have greater influence to shape these flows in accordance with American interests and principles.

This is a subtle but feasible strategy, and if implemented effectively, the influence of the dollar will continue for decades to come. Rather than simply hoarding Bitcoin reserves (which may indicate doubts about the stability of the US dollar), it is better to strategically integrate Bitcoin into the financial system and promote the development of the US dollar and US dollar stablecoins on the Internet, so the US becomes Active managers, not passive bystanders.

What are the benefits? A more open financial infrastructure, while the United States still controls the "killer application" - the US dollar. This method is exactly the same as companies such as Meta and Deepseek. They formulate industry standards through open source AI models and at the same time achieve monetization in other places. For the United States, this means expanding the dollar platform to interoperate with Bitcoin, ensuring that cryptocurrencies continue to remain relevant in the future as they play a central role.

Of course, like any strategy against disruptive innovation, this strategy also has risks. But the price of resisting innovation is outdated. If there is any session that can do this, it is the current one – it has deep expertise in platform warfare and it is clear that staying ahead is not about controlling the entire ecosystem, but about shaping how ObtainGet value.