Bitcoin Enters the Arena: A New Chessboard for U.S. Strategic Reserves

On March 6, 2025, U.S. President Trump signed the executive order "Establishing a Strategic Bitcoin Reserve and U.S. Digital Asset Reserve."

Author: OxCousin, IOBC CapitalOn March 6, 2025, U.S. President Trump signed the executive order "Establishing a Strategic Bitcoin Reserve and U.S. Digital Asset Reserve." The next day, a White House crypto summit was held. This is another important milestone for the crypto industry.Bitcoin Enters the Arena: A New Chessboard for U.S. Strategic ReservesWe view this matter from the perspective of the U.S. government. The purpose of establishing a Bitcoin strategic reserve is to strengthen and consolidate the U.S.'s dominant position in the global financial system. The executive order states clearly: "The U.S. government currently holds a significant amount of BTC but has yet to formulate relevant policies to leverage the strategic value of these BTC in the global financial system. Just as it is in the national interest to properly manage ownership and control of other resources, we must harness rather than restrict the potential of digital assets to promote national prosperity." There have been multiple precedents for strategic reserves in U.S. history. For example: Strategic Gold Reserves ------ In the 19th century, the U.S. adopted the gold standard, with the value of the dollar supported by gold reserves. In 1933, President Roosevelt signed Executive Order 6102, prohibiting private ownership of gold and mandating the confiscation of gold to be deposited in the Federal Reserve; in 1934, the U.S. introduced the Gold Reserve Act, transferring gold reserves to the Treasury; in 1944, the U.S. established the Bretton Woods system, promising to exchange gold at $35 per ounce, making the dollar an international currency; it wasn't until 1971, during President Nixon's term, that the dollar was decoupled from gold, marking the collapse of the Bretton Woods system and the end of the gold standard. Strategic Petroleum Reserves ------ In 1974, the U.S. reached an agreement with Saudi Arabia and OPEC countries that international oil trade must be conducted in dollars, which naturally made the dollar the global reserve currency; in 1975, the U.S. Congress passed the Energy Policy and Conservation Act, establishing the Strategic Petroleum Reserve (SPR), which peaked at nearly 700 million barrels, dropping to 350 million barrels by 2024. On June 9, 2024, the oil dollar agreement between the U.S. and Saudi Arabia officially expired, and Saudi Arabia announced it would not renew. Of course, there are also some strategic reserves with less far-reaching impacts, including ------ uranium, rare earths, silver, food, etc. Less than a year after the end of the oil dollar system, the U.S. established a strategic Bitcoin reserve. This indicates a strong consensus on Bitcoin as "digital gold." Strategic Considerations for U.S. Strategic Bitcoin Reserves1. Consolidation of Dollar Financial HegemonyFor a long time, the dollar has dominated the global financial system, serving as the primary currency for international trade and financial transactions. However, with changes in the global economic landscape, the rise of emerging economies, and the reshaping of geopolitical dynamics, the dollar's financial hegemony is facing challenges. Bitcoin, as a decentralized digital currency, possesses unique advantages in global circulation; its transactions are not controlled by traditional financial institutions or governments, allowing for rapid transactions and convenient circulation that can breakthrough geopolitical constraints. If the U.S. strengthens the connection between the dollar and Bitcoin and Crypto by being the first to establish a Bitcoin strategic reserve, it could occupy a high ground in the Crypto field, integrating the Crypto market into the dollar settlement system, thereby consolidating the dollar's position in international financial transactions. This would undoubtedly be a powerful defense of its dollar financial hegemony in the new financial era. As Trump mentioned at the White House crypto summit, establishing a Bitcoin reserve is akin to creating a "virtual Fort Knox" (Fort Knox is a U.S. facility that stores the national gold reserves). He also noted that congressional legislators are pushing for clarity in legislation regarding dollar stablecoins and U.S. digital asset market regulation, and he will ensure the long-term stability of the dollar's position. The pieces are in place. From a top-level design perspective, this may be the first time such an idea has been publicly announced. However, U.S. companies have already laid out key tracks in the Crypto field: in asset issuance ------ although there are criticisms regarding the inability to achieve Trustless in the RWA tokenization process, Franklin Templeton has become the largest traditional financial institution issuing RWA for U.S. Treasury bonds; in asset securitization ------ the total assets under management of U.S. BTC spot ETFs issued by traditional financial institutions led by BlackRock have exceeded $100 billion; in asset trading and custody ------ Nasdaq-listed company Coinbase is a major custodian for ETFs. What is currently lacking is a