Establishing a national bitcoin (Btc) Strategic Reserve can create negative market effects for BTC and the US dollar, according to Haider Rafique, global partner management for government relations and investors in Crypto Exchange OKX.
Rafique told Cointelegraph that any government Holds significant portion of BTC supply Prices can be manipulated by dumping its holdings in the market, thus interrupting BTC’s basic proposal as neutral, decentralized money.
He asked: “What happens in a couple of years if a new administration decides this is a bad idea?” Rafique added:
“Despite Bipartisan’s recent support for crypto, it is important to note that administrative policies may change rapidly. As the circumstances change over time, the concentration of BTC’s large amounts on the sheet of a country’s balance can represent a risk of destroying.”
The German government was an example of its in 2024 when it Already uploaded 50,000 BTCretaining prices that are restrained below the $ 60,000 level, Rafique said.
The Bitcoin Strategic Reserve will continue to be top-of-mind for many Bitcoin advocates, stating that establishing such a country-state BTC level is the next step to Bitcoin making the global currency reserves and the standard account unit of the account.
Related: US lawmakers have tapped Saylor, Lee to advance the Bitcoin Reserve Bill
Dangers in the US dollar and other financial markets
Establishment of a Bitcoin Strategic Reserve It can create a contagion that is not only limited to crypto markets and will have extensive macroeconomic effects, Rafique told cointelegraph.
“The most significant implications of macroeconomic are a loss of trust in the dollar,” he said.
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The construction of a Bitcoin reserve signal that the US dollar, which undergoes the global economy, is weak and does not maintain its value in the economic strength only, he added.
It can send shockwaves through the entire financial system as investors flee the US dollar for safe properties such as gold or the Swiss Franc, Rafique said.
Investors will also dispose of risk assets, creating a cascade of fluids in financial markets that are likely to end in a significant crash, as markets respond to the seismic shift in global finance, he graduated.
Magazine: Dangers to us are ‘front run’ in Bitcoin Reserve by other countries: Samson Mow
