Bitcoin News: Steven McClurg, Head of Digital Assets at CoinShares, Recently Advocated for the United States to Establish a Strategic BTC Reserve

This aligns with views of pro-crypto presidential candidates like Donald Trump and Robert F. Kennedy Jr. Moreover, during the Bitcoin Conference 2024, Senator Cynthia Lummis

CoinShares’ Head of Digital Assets, Steven McClurg, recently discussed the possibility of the United States establishing a strategic Bitcoin (BTC) reserve. This concept aligns with the views expressed by pro-crypto presidential candidates, such as Donald Trump and Robert F. Kennedy Jr.

During the Bitcoin Conference 2024, Senator Cynthia Lummis also announced a bill that would utilize BTC as a strategic reserve. In an interview with Bloomberg, McClurg elaborated on the rationale and potential implications of such a move.

The Case for a Bitcoin Strategic Reserve

According to McClurg, BTC, being a "global currency for the Internet," should naturally be included among America's strategic assets, such as oil, gold, and foreign currencies. He highlighted the role of Bitcoin as a "currency without borders" and its ability to complement traditional reserve components.

"The last five years, inflation has really crept up," said McClurg, emphasizing the rising consumer price index (CPI) in the U.S. He attributed this increase to the lack of a cap on the US dollar, arguing that it can be "inflated infinitely."

McClurg pointed out that the U.S. shifted away from the gold standard in the 1970s, leaving the dollar without a solid backing. This, he believes, has opened the door to unchecked inflation risks.

"One of the reasons why inflation is so high is because there's not any kind of cap on the US dollar. It can be inflated infinitely, and that's really why we've seen inflation rise," explained McClurg.

Challenges and Considerations

While McClurg expressed enthusiasm for the idea of a Bitcoin strategic reserve, he also acknowledged the significant hurdles that such a proposal would face. When asked about the financing of such a reserve, especially given the current concerns over the federal deficit, McClurg stated that the conversation should revolve more around inflation.

"It really has to do more with inflation. I think, ultimately, Bitcoin would be part of a broader reserve strategy, which would also include other assets, such as gold and foreign currencies," said McClurg.

He further noted that the U.S. government has a responsibility to maintain the purchasing power of the dollar, which has eroded substantially in recent years. McClurg suggested that incorporating BTC into the strategic reserve could help mitigate inflation and preserve the value of American currency over the long term.

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