For decades, countries, banks, and investors have poured money into the U.S. Treasuries—essentially lending money to the U.S. government—because they trusted the system. These Treasuries acted as a kind of “global piggy bank,” a secure asset that everyone could rely on.
But now, Matthew Pines, Executive Director of the Bitcoin Policy Institute (BPI), warned that trust is starting to crack. Speaking at the recent Bitcoin for America Conference, Pines, explained why governments worldwide are increasingly drawn to Bitcoin compared to previous years.
Pines highlighted a growing concern in the U.S.: the once-stable U.S. debt market, traditionally viewed as a secure store of wealth, is becoming increasingly uncertain.
The U.S. has piled up massive debts, and some worry that the system might not be as rock-solid as it once was. This fragility is pushing global leaders to look for other options—assets that can serve as a safe store of value outside the U.S. dollar system. Bitcoin, often called “digital gold,” is being considered as a potential solution.
Unlike traditional currencies or investments tied to a single country, Bitcoin operates on a decentralized global network. This makes it an attractive option for nations and institutions looking to protect their wealth from the risks of a weakening U.S. debt market.
The ED added that leaders are starting to see Bitcoin not just as a speculative investment, but as a serious alternative to traditional financial systems.
US creating a Bitcoin Reserve
Another reason governments are paying attention, according to Pines, is a bold move by the United States itself. Recently, President Trump signed an executive order known as the Strategic Bitcoin Reserve (SBR). This order declares that the U.S. views Bitcoin as a critical asset, comparing it to digital gold, and signals plans to stockpile it as part of the nation’s reserves.
Pines explained that this executive order landed on the desks of presidents, central bank leaders, and finance ministers worldwide, forcing them to take notice. “Last Thursday’s executive order landed on the desk of every major president, central bank chair, and finance minister in the world,” Pines said. “Now, they’re all talking about what this means for their own countries and their relationship with Bitcoin.”
The U.S.’s decision to embrace Bitcoin as a strategic asset has sparked what Pines called a “Bitcoin race.” Governments don’t often move quickly, but when they do, they act with massive resources.
Pines warned that nations could soon start pouring trillions of dollars into Bitcoin, not just as an investment but as a way to gain geopolitical power. If Bitcoin becomes a key global reserve asset—like gold or U.S. Treasury, countries that hold large amounts of it could gain significant influence on the world stage.
Pines stressed that this moment is a turning point. “And I think we’re at this inflection point where the geopolitical aspects of bitcoin start to become extremely important, and can shape the next several years of Bitcoin’s future,” he said. “The Bitcoin race is now on, and the ball is in our court to maintain our advantage.”
Michael Saylor, Vivek, and Congressman praise Bitcoin
Michael Saylor, the co-founder and Executive Chairman of Strategy, spoke about the U.S. taking the lead in adopting Bitcoin. He called Bitcoin a digital asset and said the country should buy as much as possible to benefit financially. He predicted Bitcoin would handle trillions in trade and said it matches American values. He also noted that people unable to move to the U.S. would use Bitcoin to store their wealth securely.
Vivek Ramaswamy, investor, political commentator, and founder of Roivant Sciences, a biotech company focused on drug development, said Bitcoin’s long-term gains are now the benchmark for risky investments. He explained that as easy money dries up, institutions must choose investments wisely.
He compared Bitcoin to U.S. Treasury bonds, saying while bonds define safe returns, Bitcoin defines high-risk returns. He called Bitcoin a symbol of hope, like the American flag, and suggested it belong in the national Strategic Reserve. Vivek is now running to be governor of the state of Ohio.
Congressman Ro Khanna urged Democrats to support Bitcoin, calling it an issue both parties should back. He said Bitcoin could help people worldwide gain financial power and encouraged Democrats to see its potential for financial inclusion.
How Bitcoin has risen
Ten years ago, around 2013, Bitcoin was a relatively obscure phenomenon, having been introduced just four years earlier by the pseudonymous Satoshi Nakamoto, and it was met with a mix of skepticism, confusion, and hostility from governments and financial institutions worldwide.
Many governments either ignored it or viewed it with suspicion, often associating it with speculative bubbles, Ponzi schemes, or illicit activities, a perception fueled by events like the shutdown of the Silk Road darknet marketplace in 2013, which had used Bitcoin as its primary currency.
Fast forward to 2023, and Bitcoin has transformed into a global phenomenon, boasting a market capitalization exceeding $500 billion as of late 2023. This has also come with widespread adoption by individuals, businesses, and even institutional investors, forcing governments to change their view of it.
Some nations have taken bold steps, recognizing Bitcoin as a legitimate financial asset or even legal tender, as seen in El Salvador and the Central African Republic. This highlights its potential to drive innovation and financial inclusion.
Meanwhile, other countries have responded by exploring or launching their own central bank digital currencies (CBDCs) to counter or ride Bitcoin’s growing influence. The Nigerian central bank in 2021 launched its own CBDC––the eNaira.
In the United States, the regulatory landscape has matured considerably, with the SEC approving Bitcoin futures exchange-traded funds (ETFs) in 2021 and spot Bitcoin ETFs, approved in January 2024.
Several U.S. companies are active in the Bitcoin (BTC) futures market. CME Group operates the Chicago Mercantile Exchange, a leading platform for Bitcoin futures trading since December 2017. ProShares manages the ProShares Bitcoin Strategy ETF (BITO), the first Bitcoin futures ETF launched in the U.S. in October 2021.
Cboe Global Markets introduced Bitcoin futures trading on its Chicago Board Options Exchange in December 2017 but discontinued the contracts in 2019. Meanwhile, TD Ameritrade provides clients access to Bitcoin futures trading on the CME through its brokerage platform. As the market expands and gains government support, its growth appears unstoppable.
