(qlmbusinessnews.com . Sun 28th Sep, 2025) London, UK —
The Catastrophic Impact of a Sovereign Bitcoin Treasury on the US Dollar and Global Finance
Creating a National Bitcoin Reserve Could Spell Disaster for Global Markets
The proposition of establishing a national Bitcoin reserve has come under scrutiny, with experts warning of potential catastrophic effects on global markets. According to Haider Rafique, global managing partner for government and investor relations at OKX, a cryptocurrency exchange, the move could destabilise both Bitcoin (BTC) and the US dollar.
Rafique expressed concerns to journalists, stating that any government amassing significant Bitcoin reserves could exert undue influence over the market by offloading their holdings, potentially undermining the cryptocurrency's foundational principle of decentralisation. “Consider the repercussions if a future government reverses this policy,” Rafique said, citing the German government's 2024 decision to sell off 50,000 BTC, an action that kept market prices under the $60,000 threshold.
The idea of a sovereign Bitcoin treasury is gaining traction among Bitcoin proponents, who argue that such a move would cement BTC's status as the global reserve currency. However, Rafique highlighted the broader macroeconomic risks, noting that the establishment of a Bitcoin reserve could trigger a domino effect beyond the crypto sphere.
“The gravest macroeconomic consequence could be a diminishing trust in the US dollar,” Rafique pointed out. He further elaborated that opting to build a Bitcoin reserve may suggest an inherent weakness in the US dollar, potentially undermining its role as the cornerstone of the global financial system.
Such a development, according to Rafique, could send shockwaves throughout the financial sector, prompting investors to seek refuge in traditionally stable assets like gold or the Swiss franc, and to divest from high-risk investments. This chain reaction could lead to widespread liquidations, culminating in a significant financial downturn as markets adjust to the profound shift in the economic landscape.
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