Bitcoin’s role in the U.S. economy is becoming a hot topic within the Trump administration, with key advisors reportedly discussing its potential impact on the dollar and its use as a national reserve asset.
Zack Herbert, CEO of Foundation Devices, revealed that after Trump’s election, one of his advisors raised concerns about Bitcoin’s potential threat to the U.S. dollar.
“Trump’s first question was, ‘Will Bitcoin hurt the dollar?’” Herbert told Roundtable. “He loves the dollar—it’s America. But when the advisor responded, ‘Maybe, and if it does, would you rather China hold more of it or us?’ Trump immediately got it. He said, ‘We want the Fort Knox of Bitcoin, not them.’”
Herbert believes Bitcoin is already solidifying itself as a store of value, making it a logical asset for sovereign wealth funds.
“I think there’s going to be a nation-state competition to accumulate Bitcoin,” he said. “It’s a perfect asset to put into any kind of stockpile or treasury.”
However, for Bitcoin to function as a true currency, Herbert argues that tax policy needs to change.
“I don’t think we should have capital gains tax on Bitcoin. It makes it almost impossible to use as a currency,” he said. “Even if the technology is there with things like Lightning, you’re not going to use it if every transaction needs to be reported to the IRS.”
Herbert hopes the Bitcoin-friendly figures in Trump’s administration will take steps to address this.
“Maybe we’ll see more action, not just in stockpiling Bitcoin, but in making it easier to buy and sell without worrying about taxes,” he said.
