With Donald Trump set to be inaugurated as US president on Jan. 20, crypto advocates and industry analysts are weighing the role of crypto — specifically Bitcoin (BTC) — in the economy, and whether Trump’s stated pro-crypto policies will prop up the US dollar or erode its position as the global reserve currency.
Speaking to Cointelegraph, Lee Bratcher — president of industry advocacy group Texas Blockchain Council — said that Bitcoin occupies the same place as gold and is not a competitor to the US dollar.
The crypto industry advocate added that overcollateralized, dollar-pegged stablecoins will likely extend US dollar dominance. Bratcher told Cointelegraph:
“If we want to continue US hegemony, we need the dollar to remain the world’s reserve currency. For that to happen, we need stablecoins to proliferate because stablecoins are giving dollar access to people around the world.”
Federal Reserve Chair Jerome Powell also likened Bitcoin to gold in a December 2024 appearance at the DealBook Summit in New York and concluded that BTC was not a direct competitor to the dollar.
Trump making promises to Bitcoiners at the 2024 Bitcoin conference. Source: Cointelegraph
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President-elect Trump to prop up the US dollar with Bitcoin?
President-elect Trump previously told Maria Bartiromo of Fox News that the United States government could use Bitcoin to offset the $35 trillion national debt.
Adam O’Brien, founder and CEO of BTC financial services company Bitcoin Well, told Cointelegraph that Trump would likely use Bitcoin to prop up the ailing US dollar in the short term but would not abandon the dollar.
Current United States national debt. Source: US Debt Clock
“I don’t see President Trump being based enough to de-dollarize the USA,” O’Brien said. “I think that ultimately, the USA will be de-dollarized. I don’t think it’ll be Trump that brings that to fruition, though.”
Trump’s policies will depend on US economic standing
CryptoQuant founder and CEO Ki Young Ju recently said that the incoming president’s Bitcoin policies will likely depend on US economic standing and the dollar’s strength in global markets.
Ju argued that Trump is unlikely to establish a Bitcoin strategic reserve and may even backpedal on promises of pro-crypto policies if the United States and the dollar continue to show strength.
Despite a long-term price depreciation since 1913, the US dollar has been gaining strength against other fiat currencies since October 2024. Source: TradingView
The CEO said individuals around the world still see the dollar as a safe haven currency and the preferred instrument to store value, despite its long-term depreciation.
Trump’s rhetoric of “making America great again” and boosting the economic position of the US are also signs that the president is committed to strengthening the dollar, Ju added.
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