US think tank report: US-China competition and Bitcoin as a US national tool

Translated by: Golden Finance

Note: Scott Bessent, the incoming U.S. Treasury Secretary, once proposed the concept of "Global Economic Reordering".

Recently, Bitcoin Policy Institute prepared a report for Scott Bessent, "A "Global Economic Reordering:" US-China Competition and Bitcoin as Tool of US Statecraft", proposing to use Bitcoin to consolidate the financial dominance of the United States.

The following is a summary of the report:

The global monetary order is facing increasing pressure. Increasing fiscal instability, increasing debt burdens, and escalating geopolitical competition are reshaping the foundations of international finance. Competitors, led by China, are pursuing strategies to reduce reliance on the U.S.-dominated dollar system, build alternative financial networks, and exploit holes in the existing order to expand their influence. By issuing dollar-denominated bonds, building gold reserves, and advancing digital payment systems, China seeks to challenge U.S. dominance and reconfigure global capital flows in its favor. These developments present both clear threats and strategic opportunities for the United States. To maintain leadership in an increasingly competitive environment, the United States must adopt a forward-looking strategy to redefine the terms of global economic engagement. This strategy must integrate monetary, technological, industrial, and geopolitical policies to address structural vulnerabilities, enhance U.S. economic resilience, and counter the ambitions of competing powers.  

At the heart of this potential geoeconomic strategy is an updated monetary system—“Bretton Woods 3.0”—that combines the stability of traditional reserve assets such as gold and U.S. Treasuries with emerging financial instruments such as Bitcoin and dollar-backed stablecoins. By leveraging these assets, the United States can modernize its financial architecture, stabilize its fiscal position, and bolster trust in the dollar system. Instruments such as long-term bonds, strategic gold revaluations, and expanded swap lines will bind allies more closely to a U.S.-centric financial network while creating a buffer against fragmentation. Domestically, revitalizing the U.S. industrial base, directing credit to strategically important sectors, and achieving energy independence are essential to rebuilding economic strength. This effort requires moving away from speculative financial practices and an overreliance on short-term liquidity. Instead, recalibrating how credit is allocated, through mechanisms such as deregulation, strategic wealth funds, and financial sector reforms, will ensure that investments drive long-term economic growth, technological innovation, and supply chain resilience.  

Internationally, the United States can deploy its financial and technological advantages to forge a durable geo-economic bloc. Preferred access to U.S. innovations in artificial intelligence, energy systems, and digital infrastructure would provide powerful incentives for alliances. These technologies are not only critical to global competitiveness, but also to strengthening the cohesion of the U.S.-led economic system, providing allies with clear cooperative benefits while denying adversaries the tools they need to challenge U.S. influence.  

Bitcoin, often referred to as “digital gold,” offers the United States a strategic advantage that fits this strategy. Its scarcity, portability, and decentralization make it an ideal complement to traditional reserve assets like gold. By establishing a Strategic Bitcoin Reserve (SBR), the United States can diversify its national balance sheet, hedge against systemic financial risks, and secure an asymmetric advantage over its competitors.  

Bitcoin’s growing adoption as “digital gold” by institutional investors, corporations, and even nation-states underscores its usefulness in the digital age. The United States is well-positioned to capitalize on this asset, as we hold the most Bitcoin of any other country (approximately 207,000 BTC), have the largest share of mining (>35%), and the most secure and popular exchanges.

Bitcoin, combined with dollar-backed stablecoins, can enhance the global reach of the dollar network, particularly in emerging markets where the long arm of China’s digital authoritarianism is attempting to gain traction. Supporting these tools will put the United States at the forefront of financial innovation while reinforcing the global dominance of the dollar system. 

This strategy is not just about financial competition; it is a blueprint for securing economic leadership, stabilizing fiscal vulnerabilities, and maintaining a technological edge over near-peer competitors. By coordinating monetary reform with domestic industrial policy and international economic policy, the United States can determine the contours of a reimagined global order, resetting it on terms that are conducive to our national security and continued prosperity.

Increasing central bank purchases of gold have attracted attention over the past few years. Less obvious, however, has been the recent move by some countries toward Bitcoin. The Gulf States and others may have already begun diversifying into Bitcoin.President-elect Donald Trump’s election and pro-Bitcoin rhetoric may have fired the starting gun in the global race for sovereign and institutional Bitcoin adoption.Even though we’ve started this race, the United States risks falling behind.

The stakes could not be higher. If we fail to act, the United States risks losing ground to adversaries seeking to undermine the foundations of our economic and geopolitical power. By taking a bold, comprehensive approach—based on modernized reserve assets, industrial revitalization, and technological leadership—the United States can solidify its position as a cornerstone of global stability and prosperity in the 21st century.