Establishing a national Bitcoin BTCUSD strategic reserve may create negative market impacts for BTC and the US dollar, according to Haider Rafique, global managing partner for government and investor relations at crypto exchange OKX.
Rafique told Cointelegraph that any government holding significant portions of the BTC supply could manipulate prices by dumping its holdings onto the market, thereby disrupting the core proposition of BTC as neutral, decentralized money.
He asked: “What happens in a few years if a new administration decides this was a bad idea?” Rafique added:
“Despite recent bipartisan support for crypto, it is essential to remember that administrative policies can change quickly. As circumstances change over time, the concentration of large amounts of BTC on a country’s balance sheet could represent a liquidation risk.”
The German government was an example of this in 2024 when it unloaded 50,000 BTC, which…
