On March 6, 2025, President Donald J. Trump signed an Executive Order to establish a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile. This move represents a strategic approach to managing digital assets under U.S. control, reflecting Washington's recognition of bitcoin's growing global role in reshaping the monetary order.
Analysts point to a powerful convergence of macroeconomic weakness and strong on-chain fundamentals. On-chain analyst Darkfost shared data on long-term held (LTH) Bitcoin supply, suggesting that large cohorts of investors are not planning to sell, even as Bitcoin approaches all-time highs. At the same time, the US dollar share in SWIFT payments has increased, with the US Dollar Index(DXY) slumping to a three-year low, down 11%. This generally suggests that the US dollar is being used less as a store of value in international reserves and more as a medium of exchange in international payments. Together, these trends imply that BTC is gradually gaining recognition as a complementary product through trust and a weakening US dollar.
Bitcoin could be seen as a threat to the dollar, but recall, the government shifted the BTC into its system. This can be referred to as the characteristics BTC has. BTC's supply is capped at 21 million and is often referred to as "digital gold". Unlike stablecoins, which are pegged one-to-one to the US dollar, BTC has no control over its creation or accounts from any states or institutions; resistant to inflation. In the same sense, BTC is seen as a neutral, borderless asset governed by universally agreed-upon rules, more likely to be adopted in other countries. By bringing Bitcoin under U.S. regulatory oversight, the US could secure a dominant position in the emerging digital economy by strengthening its future financial network and setting global standards.
Today, the world, especially the U.S. and China, is competing for digital currency and monetary infrastructure dominance. The race is more than technology: it's about reordering global monetary governance. Currently, China is promoting its central bank digital currency (CDBC), the digital yuan, and the U.S. would support BTC as a strategic tool in response.
BTC may not replace the dollar, but as its use increases, it has the potential to be transformed from a digital asset into a true currency. Though there are some fluctuations over time, it could reach equilibrium or these fluctuations could be an advantage, as they may provide an immediate profit. If the U.S. can continue to exert power across the global financial network and regulatory hegemony, this would help offset the decline in dollar dominance and its shrinking share as a global reserve currency. Moreover, the U.S. would not want the digital yuan to take that position while it remains too cautious.
Although it would take time for Bitcoin to reach the level of being a "global money", it would remain meaningful as a strategic counterbalance to the digital yuan. By transforming a potential threat into a strategic opportunity, the U.S. seeks not to resist Bitcoin's rise but to reinforce American financial leadership in the digital era.
Minji Choe is a second-year undergraduate student in the Department of Public Policy and Management at Yonsei University. Her research interests include public policy, international relations, and international trade, with a regional focus on Russia, China, the United States, and Japan. Her research focuses on the political and economic implications of global developments, and she plans to further her studies in international political economy and industrial development.