Jason Rivers (@JasonRiver11959)
Writes for the Headline Diplomat eMagazine, LUDCI.eu
Introduction
The future of the U.S. economy may be heading toward its most radical transformation yet. Former President Donald Trump’s administration is reportedly pushing a dramatic shift—one that involves replacing the U.S. dollar with cryptocurrency as the centerpiece of American financial strategy. With global markets already reacting and U.S. stock valuations reaching dizzying heights, the question is no longer if change is coming, but what kind of future it will bring. Is this a bold leap into innovation—or a risky bet that could backfire?
The Donald Trump administration’s desire to replace the dollar with cryptocurrency in the global financial system carries serious risks. There’s little chance that anyone will buy the same “product” in a new “package” from the White House.
American financial authorities and much of the world’s media have long wanted to convince everyone that the U.S. economy is fine. And with Trump in power, it will be even better. Financial analysts in the U.S. have expressed an unwarranted degree of confidence. Wall Street is characterized by inflated expectations. U.S. stocks are predicted to outperform the rest of the world again this year. The financial health of U.S. households and corporations is a key factor in this positive outlook, with strong balance sheets contributing to sustained economic growth.
Against this backdrop, not many financiers want to pay attention to the fact that the U.S. stock market has grown so much that it’s about to burst. They also don’t want to bet against American exceptionalism. The sensible thing to do, which is to say that in the later stages of a “bubble” prices tend to rise rapidly, is not being listened to. People also ignore the fact that U.S. stock prices have risen more in the last six months than at any time in the last 25 years.
Cryptocurrency vs. US Dollar
Still, the Trump administration seems to recognize the urgency of the situation and is serious about addressing it. To reduce the financial bubble, the White House plans to use cryptocurrencies.
On January 23, the U.S. President signed an executive order banning the creation of central bank digital currencies that could compete with existing cryptocurrencies. The White House is accelerating the devaluation of the dollar to reduce the value of U.S. debt obligations in terms of crypto assets. At the same time, it plans to use well-known ways to make other countries’ currencies less valuable, such as creating a liquidity crisis and export inflation.
The U.S. authorities are expected to soon approve the use of cryptocurrency for tax payments and government services, which will make the dollar lose its value permanently. Then the US national debt can be paid in cryptocurrency at a rate of “penny to the dollar”, and that’s it!
The implementation of such a scheme is already being actively prepared at the level of individual U.S. states. A growing number of states are promoting legislative initiatives aimed at creating strategic bitcoin (BTC) reserves or allowing cryptocurrency investments for state funds. Sixteen states, led by Utah, New Mexico and Arizona, are considering bills in various stages of passage. Financial authorities in several countries are also taking note, with the Czech Republic’s central bank exploring the possibility of converting some of its reserves into BTC.
The king is dead, long live the king?
As a result, the traditional concepts of money, the debt-based monetary system, and the time value of money are being phased out. The Trump administration has made it clear that it has set a course for a rapid and painless de-dollarization of the economy and a gradual transition to a new global currency, bitcoin. If it goes through with this plan, the old system will be put on the back burner, while the effects of the old “wasteful” financial system will be passed on to other countries.
However, the fundamental growth paradigm of the U.S. economy remains unchanged. It is still based on abnormally high government spending, a significant portion of which is used to finance the federal budget deficit. Over the past five years, the U.S. government’s debt burden has increased by a factor of 1.5. The government now requires $2 in borrowing for every $1 of GDP, and this trend is not expected to reverse in the near future. This underscores the Trump administration’s commitment to cutting government spending by any means necessary, as well as its excessive use of tariffs and sanctions. No nation wants to be a target to perpetuate a declining system.
A Floating Cryptocurrency
There’s some bad news, though. Digital assets have already become a bloated speculative instrument, almost like the dollar. BTC’s financial derivatives have driven its value to exorbitant levels, and the situation is just getting hotter! Thus, speculative pressure on bitcoin will continue, which in turn could hamper the ambitious plans of the new administration.
The overwhelming hegemony of the US dollar has once again highlighted the need for Washington’s competitors to explore the development of alternative financial instruments. However, simply replacing the dollar with BTCs will not change this paradigm. Instead, the desire of countries to secure themselves by shifting their economies to the use of financial instruments not controlled by the U.S. will only increase.
Furthermore, Trump’s move in favor of cryptocurrencies represents a major challenge for China… and a very painful one at that. If implemented, it would hinder Beijing’s ambitions to establish the yuan as a global currency on par with the US dollar. Chinese projects such as mBridge, which were designed to compete with the SWIFT system, now face significant challenges. This is likely to have a negative impact on U.S.- China relations.
In anticipation of the new negotiations
By diversifying away from the dollar, the Trump administration is pursuing a strategy to ensure the continued strength of the U.S. economy. However, the global landscape has changed significantly. Creating a new, efficient financial architecture is more challenging than dismantling an outdated system, even if many investors view it as toxic.
But it is also clear that no one will buy the same “product” from America in a new “package”. Washington must engage in comprehensive negotiations. Failure to do so would risk undermining the existing economic order, with potentially significant consequences for the U.S. Trump risks destroying the old system rather than creating a new one.
Call to Action
With discussions of de-dollarization, rising inflation, and speculative crypto markets gaining momentum, businesses, investors, and policymakers must act now. It’s essential to closely evaluate how these changes could affect global trade, investment strategy, and financial sovereignty. Should the dollar lose its dominance, will your economic models still hold? Stay informed, assess risk, and begin contingency planning for a decentralized future.
Conclusion
Whether you see Trump’s cryptocurrency pivot as a visionary response to financial stagnation or a high-stakes gamble, one thing is clear: the global monetary landscape is shifting. As Washington experiments with crypto as a tool of economic restructuring, the old financial order hangs in the balance. In this moment of uncertainty, engagement and foresight are key. The road ahead may lead to greater autonomy—or deeper instability. Either way, the world is watching—and preparing.
Additional articles by Jason Rivers:
US sanctions should stop hurting American business
Why Hong Kong, Singapore Are Poised to Overtake Switzerland
Featured story by Tima Miroshnichenko: https://www.pexels.com/photo/man-in-white-dress-shirt-using-black-laptop-computer-7567537/
