CryptoQuant founder Ki Young Ju proposes the United States establish a strategic Bitcoin reserve to partially offset national debt. His opinion is actively discussed among crypto analysts and financial experts.
Proposal for Strategic Bitcoin Reserve
Ki Young Ju considers the setup of a Strategic Bitcoin Reserve (SBR) to offset part of U.S. debt feasible. He proposes that the U.S. acquire about 1 million BTC, which could help offset 36% of its domestically held debt by 2050, equating to clearing 70% of total U.S. debt. The focus is primarily on domestic creditors, as it is assumed foreign creditors might not accept Bitcoin as payment.
Challenges to SBR Implementation
Despite the appeal of the proposed idea, there are significant implementation challenges. Bitcoin must gain market acceptance and earn global trust similar to gold to be viable as a reserve asset. Bitcoin's volatility, driven by speculative spikes, might also prove problematic, rendering it unattractive to creditors. However, Ki Young Ju believes that establishing a Strategic Bitcoin Reserve could signal the U.S. government's confidence in the asset's long-term potential, encouraging broader market acceptance.
Other Opinions and Perspective
Opinions regarding the strategic Bitcoin reserve vary. Minneapolis Federal Reserve Bank President Neel Kashkari argues that Bitcoin has "little" practical use. Conversely, Michael Saylor of MicroStrategy holds an opposing view, suggesting the U.S. needs Bitcoin reserves.
The establishment of a strategic Bitcoin reserve in the US remains a debated topic among experts. Ki Young Ju's idea may contribute further momentum to discussions on the future of cryptocurrency at a global level.
