Alex Gladstein, the CSO at the Human Rights Foundation, states that if Bitcoin were used as a global reserve currency, nations would be less likely to launch wars.
Gladstein believes that the US was able to continue its “forever conflicts” during Afghanistan and Iraq mostly through borrowing capital. It was made possible because of the Federal Reserve’s policy on monetary which has helped keep interest rates low by quantitative ease.
As opposed to fiat currencies, Bitcoin’s total value is indestructible. This means that if countries decided to use Bitcoin as their primary reserve, the interest rates for borrowed money would be more. Gladstein also shared that will make unpopular wars more difficult to endure for governments.
“We effectively create money, issue bonds on the open market for the promise of future payment, and use the revenues from the bond sales to fund these conflicts,” Gladstein continued.
According to Economictimes the Ukrainian-Russian conflict could lead to the demise of the US dollar as the most-used reserve currency. He also noted that nations are seeking to decrease their dependence on the greenback following it was revealed that the US froze Russia’s dollar-denominated reserve as a response to the attacks on Ukraine.
“These everlasting wars will probably be removed or reduced by the form of a Bitcoin standard,” was the conclusion of Gladstein.
“It’s forcing a rethink,” she adds, “where governments are thinking, ‘Maybe I don’t want all my eggs in one basket.'” Gladstein remarked, “Perhaps I don’t want the US government to be able to freeze all of my assets.”