Ki Young Ju, CEO and founder of CryptoQuant, has highlighted that the strength of the United States economy and the US dollar will likely influence President-elect Donald Trump’s Bitcoin policies. The US dollar, despite losing over 90% of its value since 1913, continues to be the dominant fiat currency, seen as a safe haven by global investors. This perception, according to Ju, may discourage the Trump administration from adopting a Bitcoin strategic reserve.
Ju noted that value-storing assets like Gold and Bitcoin tend to rise in price when there are perceived threats to the US’s economic dominance. However, the current investor confidence in the US economy could lead Trump to reconsider any pro-Bitcoin stance, maintaining the focus on the US dollar’s supremacy. Statements and actions by Trump previously emphasized the power gap between the US and other nations, bolstering capital inflows to the dollar, reinforcing confidence in its leading position.
The preference for the US dollar is evident in various regions, including South Korea, where locals favor it over Gold or Bitcoin amid a weakening Korean won. This trend is also apparent in emerging economies, where US dollar stablecoins are used as a store of value.
Charles Cascarilla, CEO and co-founder of Paxos, recently remarked that dollar-pegged stablecoins will play a crucial role in the blockchain economy, enhancing the utility of the US dollar by incorporating the internet’s speed and connectivity. The increasing reliance on stablecoins is evident in places with rampant inflation, like Turkey and several Latin American countries, where over 50% of digital assets transactions involve stablecoins.
