Forbes: Bitcoin may solve the dollar triffin problem and become a global neutral reserve asset

Comparing news, a Forbes article said that US Vice President JD Vance's previous views on the US dollar's status as a global reserve have sparked discussions on the long-standing contradictions in the US dollar system. The article argues that although the US dollar brings financing advantages as a global reserve currency, it also causes the Triffin Dilemma (Triffin Dilemma) problem: it is difficult for a country's currency to meet domestic economic needs and global reserve requirements at the same time.

The article points out that the US dollar reserve position drives global capital inflows into the US, increases the value of the US dollar, and enables American consumers to obtain cheap imported goods, but at the same time weakens the competitiveness of the US manufacturing industry and increases the trade deficit.

The author believes that after the Bretton Woods system ended the gold exchange in 1971, the US dollar system continued to operate through US treasury bonds and the global dollar market, but the core conflict did not disappear. Although stablecoins can expand the scope of use of the US dollar, they still rely on US government debt and cannot completely solve the problem of reliance on the debt of a single country for reserve assets.

The article said that although gold has non-sovereign properties, there are restrictions on transportation, verification, and settlement efficiency. Bitcoin, on the other hand, has characteristics such as fixed supply, no national credit endorsement, global verification, and rapid digital settlement, and may become a new neutral reserve asset.

The author suggests that in the future, the US dollar can continue to be used as a global transaction and commercial currency, while Bitcoin may gradually assume more of the role of a reserve asset, thereby easing the global monetary system's dependence on the debt of a single country.

However, the article also points out that Bitcoin still faces problems such as price fluctuations, limited institutional adoption, and insufficient maturity of the custodian system. Gold has hundreds of years of financial history, and Bitcoin is only 17 years old, and it will take time to verify whether it can become a global reserve asset.