Trump Plans Bitcoin Reserve to Weaken Dollar by 11%

Donald Trump has expressed a favorable view towards bitcoin becoming the ultimate international reserve currency. This stance is part of a broader strategy to weaken the dollar, which Trump believes will boost American production and reduce the trade deficit. The White House is reportedly planning to establish a strategic bitcoin reserve, aiming to accumulate as many bitcoins as possible before it becomes a major international currency.

The dollar has seen a significant decline, down more than 11% since the beginning of the year. This trend aligns with Trump's goal of stimulating American production, as he has previously stated that a strong dollar harms the manufacturing industry and the competitiveness of the United States. Trump's policy of competitive devaluation, known as “the Mar-a-Lago deal,” is behind the tariff strategy aimed at reducing the country’s unsustainable trade deficit.

In Asia, the dollar is being actively discarded. The greenback has lost value against several Asian currencies, including the Taiwanese, Korean, Thai, Malaysian, and Singaporean currencies. This shift is part of a broader diversification strategy among Asian investors, who are moving away from the outdated idea of the absolute supremacy of the dollar. This trend is seen as a potential benefit for bitcoin, as it could fill the void left by the declining dollar.

Trump's stance on bitcoin is surprising, given his previous statements about the dollar remaining strong. He declared in June 2025 that “The dollar must remain strong; it is the backbone of our economy and the trust the world places in us. We cannot afford to let it weaken, especially with all the global challenges we face.” However, his latest statements suggest a shift in perspective, acknowledging that bitcoin could relieve pressure on the dollar.

The strategic reserve of bitcoins is not a pipe dream but a planned initiative. White House advisor Bo Hines declared that the infrastructure to establish the strategic reserve and increase bitcoin reserves is being built. The plan is to accumulate as much bitcoin as possible, with the constraint being not to encroach on the nation’s budget. It is suggested that the plan involves trading gold for bitcoin, as indicated by Bo Hines' interactions with Senator Cynthia Lummis.

Trump's bet on acquiring millions of bitcoins is seen as a compensation for the potential abandonment of the dollar's exorbitant privilege. The coming months are expected to be fascinating as the world watches the United States' moves regarding bitcoin. The Federal Housing Finance Agency (FHFA) has endorsed this decision, echoing recent statements by Federal Reserve Chairman Jerome Powell, who said banks are free to integrate bitcoin into their activities. Major American banks already allow their clients to buy bitcoins through their apps, with Citibank and Bank of America expressing optimism about bitcoin's potential as a currency of choice for international trade and a significant innovation.