The future of Bitcoin policies under Donald Trump may hinge on the perceived stability and dominance of the US dollar, according to Ki Young Ju, CEO of CryptoQuant. As the US dollar remains the world’s most dominant fiat currency despite losing over 90% of its value since 1913, its position as a safe haven shapes global investment trends.
Bitcoin and Gold Thrive on Economic Uncertainty
Ki Young Ju highlighted that store-of-value assets like Bitcoin (BTC) and gold typically see price surges during periods of uncertainty about the US economy’s strength. However, with investors continuing to trust the US dollar as a reliable safe haven, Trump’s administration is unlikely to prioritize Bitcoin adoption to protect dollar hegemony.
Ju stated:
“Even before his inauguration, Trump consistently warned other world leaders of the power gap between the US and other nations. This rhetoric, combined with increased capital inflows to the dollar, could renew confidence in its supremacy.”
Stablecoins Extending US Dollar Dominance
The rise of overcollateralized stablecoins further strengthens the US dollar’s position. At the Bitcoin Middle East and North Africa (MENA) conference, Paxos co-founder Charles Cascarilla emphasized that dollar-pegged stablecoins will become the backbone of the blockchain economy. These stablecoins combine the reliability of the US dollar with the speed and connectivity of blockchain technology, offering a robust alternative in volatile economies.
Cascarilla noted, “The entire financial system will eventually be on-chain, and dollar-pegged stablecoins will significantly enhance the utility of the US dollar.”
Stablecoins as a Safe Haven in Economically Challenged Regions
In countries battling hyperinflation, such as Turkey, where inflation soared to 67% in March 2024, dollar-pegged stablecoins have become a preferred store of value. Turkey leads the world in stablecoin purchases relative to its GDP, as citizens seek stability against their rapidly depreciating currency.
Similarly, a 2023 Chainalysis report revealed that over 50% of digital assets transferred in Latin American countries—including Argentina, Brazil, Colombia, Venezuela, and Mexico—were stablecoins.
Trump’s Stance on Bitcoin and the Future
Ju believes Trump’s administration may avoid adopting Bitcoin as a strategic reserve due to the US dollar’s continued dominance. Instead, the focus could remain on strengthening the dollar’s global influence, with stablecoins playing a pivotal role in bridging traditional fiat and digital economies.
As Bitcoin continues to gain traction in economically volatile regions, its role as a global store-of-value asset may grow. However, for now, the US dollar’s supremacy remains unchallenged, shaping Trump’s potential Bitcoin policies and the broader cryptocurrency landscape.
