US senators announced a bill requiring the Federal Reserve to hold bitcoin as a strategic reserve asset. What does this mean for the US economy and bitcoin itself? What amounts are at issue? And how might this affect the dollar and its stability?
This is an unconventional idea, largely due to the fact that BTC has carved out a niche in the financial world, has been in existence for quite a long time, has gained its own volume of liquidity, regulation and supporters, and is penetrating deeper and deeper into fiscal processes.
For the US economy, the passage of this bill would mean stricter regulation to avoid market manipulation and stricter market, storage and security requirements. At the same time, it would become an unconditional credo of trust in the cryptocurrency sector.
Needless to say, such a scenario would be positive for the digital asset market.
Bitcoin might initially account for 0.5-1.0% of the country’s currency reserves, but in the future its proportion could rise.