The Republicans and Donald Trump seem set on establishing a strategic crypto reserve. They are claiming this will somehow be an important source of economic security for the country. It’s clear that establishing the reserve will be an important way to give tens of billions of dollars to Donald Trump’s campaign contributors, but it is much harder to see how it will provide any economic security to the country.
Ah, on this point I think you are incorrect. Since there are exchanges all over the world actively trading between crypto and their local currencies, crypto provides an interesting route around the currency exchanges.
If the Dollar (and only the dollar) tanks with respect to other conventional currencies, it’s very likely to tank vs. Crypto as well, because those Crypto holders can easily choose to buy Euros or Yen or whatever with their crypto instead.
I actually think this is the end goal with Trump’s Strategic Shitcoin Reserve: sell dollars for crypto, tank the dollar, buy back dollars with crypto…
You are forgetting that USD is the world reserve currency.
… for now. If a President wanted to destroy the dollar as the world’s reserve currency, he would do all the things Trump is doing right now.
Or tried to do, like when he tried to collapse Treasury bonds.