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Charles Hoskinson stated the risks for bitcoin as a reserve asset of the United States

Forklog / 09.08.2024 / 16:18
Charles Hoskinson stated the risks for bitcoin as a reserve asset of the United States

The idea of turning bitcoin into a reserve asset of the United States carries significant centralization risks for the cryptocurrency. Cardano co-founder Charles Hoskinson told Cointelegraph.

The initiative on the possible use of digital gold in a similar capacity was put forward by US presidential candidate Robert F. Kennedy Jr. He suggested that the Ministry of Finance buy 4 million BTC.

Hoskinson noted that this would amount to 19% of the total asset supply.

"It's a mixed picture. On the one hand, it would be great for the price and regulation in the United States, because the country would become a "probitcoin" in a certain respect," he believes.

However, the entrepreneur warned that owning such a significant share could lead to undesirable consequences.

"If something happens that the United States does not agree with, they can use their geopolitical power to change it, because they have a strategic interest in the asset. So be careful greeting these people with their power," Hoskinson said.

He extrapolated the situation to commodities, noting that it is unlikely "it can be pleasant if someone buys up 20% of global oil supplies or something like that."

"So it would be a cartel," concluded the Cardano co—founder.

Recall that Republican presidential candidate Donald Trump said that the United States should not sell government-owned bitcoins. In his opinion, the country should also become a "mining superpower".

The politician suggested that the first cryptocurrency could become a key tool in solving the problem of the growing American national debt, which exceeded $ 35 trillion.

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