Create strategic Bitcoin reserve

THE EDITOR: I write as a concerned citizen to urge the government to urgently consider creating a strategic Bitcoin reserve. Our nation is currently grappling with rampant inflation and a lack of access to US dollars, which are essential for global transactions. This situation has left our economy vulnerable and in need of innovative solutions.

While there have been inquiries into cryptocurrency in our country, the local banks continue to block crypto transactions, including those involving stablecoins. This approach is not only restrictive, but also counterproductive in the face of the rapidly evolving digital economy.

To be fair, our local currency is hardly desired regionally, far less globally. Our neighbours in the Caribbean are hesitant to accept it, importers have described it as "monopoly money" in their dealings with global partners, and a number of businesses have closed due to a lack of foreign exchange.

In TT we have the Heritage and Stabilisation Fund (HSF), established in 2007. As of the end of September 2024, the HSF had a total net asset value of US$6,087.9 million.

One of the main purposes of the fund is to provide a financial buffer for the country's budget in times of economic volatility or fiscal shocks. What better asset for this purpose than one that cannot be diluted, is controlled by no central party, cannot be censored, and is currently one of the fastest-growing asset classes desired by both institutions and nation-states?

The creation of the HSF demonstrates our nation's foresight in addressing an uncertain future. A pivot to an asset not vulnerable to inflation, as the US dollar is, would further enable the HSF to accomplish its intended purpose.

Creating a strategic Bitcoin reserve could provide a solution to our economic challenges. Unlike traditional currencies, Bitcoin is not subject to inflation in its supply. This scarce asset can be sovereignly owned and custodied, and does not require expensive audits or transfer fees like gold.

We would join nations such as El Salvador, the Kingdom of Bhutan, and the US in recognising the value of the digital asset and employing its characteristics for the benefit of citizens.

Embracing Bitcoin would position TT to benefit from the new digital capital future as the value from other traditional assets flow into Bitcoin. Our current administration should seek to craft the relevant policy as soon as possible. This forward-thinking approach could cement TT's place at the forefront of the new digital global landscape.

In conclusion, I urge the government to prioritise the creation of a strategic Bitcoin reserve. By doing so we can safeguard our nation's economic stability and ensure a prosperous future for generations to come.

JON HUBERT BRISTOL

via e-mail