Incoming U.S. President Donald Trump is unlikely to support calls for a Bitcoin reserve for the United States, given his unwavering belief in the supremacy of the dollar as the global reserve currency, according to TD Cowen analysts.
Trump’s recent statements reinforce his stance on preserving the dollar’s central role, TD Cowen analysts said a note. Over the weekend, he threatened the BRICS alliance—comprising nations such as China, Russia, India, and Brazil—with 100% tariffs if they move forward with plans for a new currency or seek alternatives to the dollar in global trade.
TD Cowen analysts said that while some see a strategic bitcoin reserve as a hedge against the dollar’s potential decline, such an idea conflicts with Trump’s prioritization of U.S. economic and military power. They added that Trump views the dollar’s dominance as integral to American strength and influence, leaving little room for alternative reserves.
Advocates for a Bitcoin reserve, including organizations like the Bitcoin Policy Center, suggest that holding digital assets like bitcoin could ensure the U.S. remains a leader in global finance. However, TD Cowen analysts find it improbable that Trump would endorse a move perceived as undermining the dollar.
While Trump might reference bitcoin in public statements or social media posts to generate attention, TD Cowen believes any serious push for a reserve would require significant political capital, which Trump is unlikely to spend on this issue.
The analysts suggest the debate could evolve over the next two years. They argue proponents of a bitcoin reserve may need to shift their rhetoric away from framing it as a hedge against dollar decline to gain traction in a Trump-led administration.
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