US Bitcoin reserve proposal sparks debate over future adoption

The idea of the United States creating a strategic Bitcoin (CRYPTO:BTC) reserve has sparked a lively debate on social media, with contrasting opinions emerging.  

Some enthusiasts see it as an inevitable step toward global bitcoin adoption by nation-states, while others view it as a betrayal of the cryptocurrency's core philosophy of decentralisation and individual freedom.  

The conversation gained momentum when political figures like Donald Trump promised to transform the U.S. into the “crypto capital of the world” and Senator Cynthia Lummis introduced the "Boosting Innovation, Technology and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act."  

This proposal aims to establish a bitcoin reserve to strengthen the U.S. dollar and address the national debt.  

The topic has since sparked widespread discussions across platforms like X, Facebook, and Reddit.  

Opinions on the idea remain divided.  

On November 18, Blockstream CEO Adam Back weighed in, saying, “If the U.S. Strategic Bitcoin Reserve happens prepare for 7 figure bitcoin. this cycle.”  

“The market is skeptical on meaningful follow through for now, so that is not at all priced in,” Back also remarked.

In a response, he added that if the concept “becomes real” he would expect “rapid repricing.”  

Not everyone is enthusiastic about the proposal.  

“A U.S. 'Strategic Bitcoin Reserves' (#SBR) would serve the same purpose the official 8,133 metric ton U.S. gold stock now serves in upholding the U.S. dollar’s value—that is, no purpose at all,” said George Selgin, Director Emeritus at the Cato Institute’s Center for Monetary Financial Alternatives, in an editorial arguing that a U.S. bitcoin reserve would serve no practical purpose in supporting the U.S. dollar.

“The risk I see of countries making bitcoin a Strategic Reserve is that some countries will seize the [bitcoin] of their citizens,” Vik Sharma, founder of Cake Wallet, also voiced concerns.

“Am I being paranoid? You think this will only happen in countries run by despots? Well the U.S. did it in 1933. Look up Executive Order 6102 by Roosevelt which lasted until 1974 … You gotta keep some of your ‘store of value’ in some real invisible currency. Damn … there’s that monero side of me spewing conspiracy sh** again,” he added.

The debate around the U.S. bitcoin reserve proposal reveals a clash of ideas between centralised control and decentralisation, raising important questions about whether a tool designed to free individuals from state control can be used by governments to further their own interests.  

The outcome of this discussion may have significant implications for Bitcoin's future.  

At the time of reporting, the Bitcoin (BTC) price was $96,073.92.