Forbes says BTC could become a neutral global reserve asset

Bitcoin could become a neutral global reserve asset that helps address concerns over the dollar losing its reserve-currency status and the current system’s reliance on U.S. sovereign debt, Forbes said. Forbes said the dollar benefits from its reserve-currency role by making funding easier, but faces the Triffin Dilemma, making it difficult to meet both U.S. economic conditions and global reserve demand at the same time. It said the system draws global capital into the United States and lets U.S. consumers buy imports more cheaply, while weakening domestic manufacturing competitiveness and deepening trade deficits. Forbes added the current framework has been barely sustained through U.S. Treasuries since the end of the gold standard, but its core contradiction remains unresolved. It also said stablecoins cannot fully solve the reserve-asset issue because they still rely on U.S. government debt. Gold is neutral, Forbes said, but has limits in transport, verification and settlement efficiency. By contrast, BTC has a fixed supply, does not require any state to guarantee its credit, and is easy to verify, settle and transport globally, which could make it a new neutral reserve asset. Forbes added the dollar could continue serving as the reserve currency for transactions and commerce, while BTC gradually takes on more of the reserve-asset role and reduces reliance on any single country’s debt. It said BTC still needs to overcome issues including price volatility and limited institutional adoption.