Crypto ‘arms race begins’ amid US Strategic Bitcoin Reserve speculation

The Trump administration’s exploration of the creation of a national Strategic Bitcoin Reserve (SBR) signals the dawn of a global “crypto arms race,” predicts global financial giant deVere Group.

The bullish prediction from the CEO, Nigel Green, comes after President Donald Trump announced on Thursday that his administration will evaluate whether to create a “national digital asset stockpile”, although his executive order fell short of creating a Strategic Bitcoin Reserve outright.

Nigel Green comments: “We believe that the US’s Strategic Bitcoin Reserve is not just a possibility but an inevitability—one that would be expected to set off a cascade of similar policies worldwide.

“This could be the beginning of a fundamental shift in how wealth and power are stored and protected. Countries around the world would then be – if they’re not already, as reports suggest – racing to acquire Bitcoin in anticipation of its role as a cornerstone of a new global financial order.”

The concept of a Strategic Bitcoin Reserve is grounded in logic that echoes the role of gold in central banks.

Bitcoin’s capped supply of 21 million ensures scarcity, making it resistant to the inflationary pressures that plague fiat currencies. For the US, an SBR could serve as a hedge against currency devaluation while potentially appreciating in value to help reduce national debt.

Senator Cynthia Lummis’s proposal for the US to acquire 200,000 Bitcoin annually for five years aligns with this rationale. Even if large-scale purchases are currently politically challenging, the 207,000 Bitcoin already held by the US government could be reclassified as part of an SBR, setting a precedent.

The deVere CEO continues: “Bitcoin’s ability to protect wealth against inflation is, many believe, unparalleled. By holding it as a reserve, the US not only shields its economy but also positions itself as a leader in the new financial era. This policy could be too strategically sound to ignore.”

Should the US formally adopt an SBR, it will act as a catalyst for other nations. Other economies, as well as major players like China and Russia, are likely to accelerate their Bitcoin accumulation strategies to avoid being left behind.

“This arms race would reshape global monetary systems, with countries vying to secure digital assets just as they did with gold,” explains Nigel Green.

“No major nation can afford to be sidelined in the digital economy. A world where states compete for cryptocurrency reserves would likely redefine the balance of economic power.”

The potential establishment of a Strategic Bitcoin Reserve by the US is a pivotal moment in global finance.

“It would represent the first significant steps in integrating digital assets into national economic strategies, ushering in a new era of financial competition and innovation,” concludes the deVere CEO.