Creating a national Bitcoin reserve could prove disastrous for markets, as it would signal an immediate shift in the global financial order.
Establishing a national Bitcoin (BTC) strategic reserve may create negative market impacts for BTC and the US dollar, according to Haider Rafique, global managing partner for government and investor relations at crypto exchange OKX.
Rafique told Cointelegraph that any government holding significant portions of the BTC supply could manipulate prices by dumping its holdings onto the market, thereby disrupting the core proposition of BTC as neutral, decentralized money.
He asked: “What happens in a few years if a new administration decides this was a bad idea?” Rafique added:
