The idea of a Strategic Bitcoin Reserve under President Donald Trump has sparked intense debate, with European leaders warning that aggressive US crypto policies could lead to financial chaos. Trump's executive order on March 6 included plans to use seized BTC from criminal and civil cases. According to Polymarket, there's only a 29% chance the reserve will be implemented within Trump’s first 100 days. Meanwhile, Bitcoin price is at $82,693.09 at the time of publication, after previously hitting $100,000.
European Leaders Warn US
European Central Bank policymaker François Villeroy de Galhau has been vocal about his concerns over Trump’s Bitcoin strategy. Speaking to *La Tribune Dimanche*, he said:
“We are seeing great brutality on the American side. Donald Trump seems to harbor this false vision that the global economy is a zero-sum game. He sees it like a Monopoly board, with a fixation on trade deficits: what some gain is necessarily what others lose.”
Villeroy added that global trade should be about collaboration, not competition. He told European nations to strengthen their economic policies in response:
“No! Trade is about exchanging ideas, talents and products to create wealth together. We must not respond to this brutality with passivity or inevitability, but with will.”
US Political Opposition
As European leaders warn, opposition in the US is growing. Based on reports, Representative Gerald Connolly is urging Treasury Secretary Scott Bessent to stop Trump’s Bitcoin Reserve plan, citing conflicts of interest tied to Trump’s friends and donors. Critics say BTC is too volatile for national reserves, others see it as an inflation hedge.
Experts Discuss Bitcoin's Role in Financial Stability
**Naysayers Warn of Market Chaos** Critics say Bitcoin’s price swings will destabilize national reserves. The current dip, where BTC has fallen from over $100,000, has only strengthened their case. If Bitcoin were to lose big, the US Treasury would lose. Economist Paul Krugman said:
“Bitcoin is a speculative asset. While it has gotten institutional interest, it doesn’t have the stability of a national reserve.”
**Supporters Point to Liquidity and Resilience** Crypto analyst Christopher Perkins says digital assets can enhance financial stability. He cites Bitcoin’s liquidity and ability to do real-time transactions, reducing settlement risks; something traditional finance has struggled with for ages. From his experience during the Lehman Brothers collapse, Perkins says liquidity is key to market resilience. He compares Bitcoin to gold in economic downturns, saying it can be a store of value in times of crisis.
“Bitcoin’s decentralized nature makes it an alternative to traditional banking systems, reduces systemic risk.”
As Trump’s Bitcoin Reserve plan is being challenged by both US lawmakers and European officials, the debate over government-held BTC is far from over. While concerns over market manipulation and regulatory risks persist, institutional interest in digital assets is growing. The next few weeks will decide if the US will move ahead with their Bitcoin plan or face growing opposition from lawmakers and international partners. Either way, the outcome will set a precedent for national crypto reserves and the role of digital assets in global finance.
