Potential Impact Of Cryptocurrency On U.S. Economic Policies

According to BlockBeats, on December 18, China International Capital Corporation (CICC) suggested that former President Donald Trump might establish a 'Cryptocurrency Advisory Committee' and consider Bitcoin as a strategic reserve asset for the United States. However, even if the U.S. Congress advances a Bitcoin reserve plan, the process is expected to be slow and fraught with challenges, with limited impact on the global U.S. dollar reserve currency system. Despite these challenges, cryptocurrency payments are anticipated to gain traction, particularly with the increased use of stablecoins in cross-border transactions. Given the Republican Party's control of both the House and Senate and Trump's opposition to a digital dollar during the recent election, it is expected that the Federal Reserve will not introduce a digital dollar during Trump's term. The Federal Reserve is likely to continue focusing on traditional economic indicators, with cryptocurrency having minimal influence on its monetary policy. During Trump's second term, cryptocurrencies may amplify the volatility of the U.S. stock market and lead to a reallocation of liquidity among different assets. Cryptocurrencies are expected to play a more significant role in overseas asset allocation portfolios, and U.S. stock market assets related to cryptocurrencies may benefit from policy advantages.