Front page report by the German newspaper Frankfurter Allgemeine Zeitung states that attacks from the United States, Donald Trump's construction of a financial system using Bitcoin, could become dangerous.
Experts analyze that President of the United States Donald Trump promoting the use of cryptocurrencies like Bitcoin may trigger the following risks:
1. Threat to the international status of the US dollar
The popularity of cryptocurrencies may weaken the US dollar's position as a global reserve currency. If a large amount of transactions shift to Bitcoin or other stablecoins, it may reduce the demand for the US dollar and affect the ability of the United States to maintain fiscal spending through the issuance of government bonds.
2. Increased financial system risks
If stablecoins are over-issued and lack regulation, it may lead to increased asset price volatility and systemic risks. For example, excessive reliance on cryptocurrencies may expose financial institutions to high-risk assets, affecting financial stability.
3. Risk of policy conflicts
The Trump administration has incorporated Bitcoin into the national strategic reserves through executive orders, but has not implemented sufficient regulation on the cryptocurrency market. This "relaxed regulatory" stance may lead to uncontrolled capital expansion, forming policy contradictions with the Democratic Party's cryptocurrency regulatory framework.
4. Hidden dangers in debt management
The government may seize Bitcoin through judicial procedures to alleviate debt pressure, but if the price of cryptocurrencies fluctuates sharply, it may lead to sustainability risks for government bonds. For example, if the value of Bitcoin drops significantly, it may force the government to adjust its debt management strategy.
Original: www.toutiao.com/article/1846996036109312/
Statement: The article represents the views of the author.