Bitcoin’s potential role as a strategic reserve asset for the United States is a hot topic, with advocates suggesting its inclusion on the national balance sheet. Scott Melker, the Host of The Wolf of All Streets Podcast, and U.S. Representative Ro Khanna (D- CA) delved into this and other pressing issues about digital currencies and their impact on the U.S. economy and global financial systems.

Scott Melker opened the discussion by addressing the idea of the U.S. government using bitcoin as a strategic reserve asset. Former President Trump endorsed the idea during his speech at the Bitcoin Conference in Nashville over the weekend. He pointed out that the government already holds bitcoin confiscated from illegal activities like Silk Road.

Rep. Khanna agreed, suggesting that retaining even a small percentage of bitcoin could be beneficial. He emphasized bitcoin’s global adoption as a hedge against inflation and a tool for human rights, citing examples like Russian opposition leader Alexei Navalny using it to evade government monitoring.

Melker then highlighted the significance of stablecoins and their growing influence on the U.S. economy. He noted that stablecoin issuers are now among the largest holders of U.S. treasuries, underscoring their role in supporting the dollar.

Rep. Khanna elaborated on this point, explaining how stablecoins enable people from countries like Nigeria and India to transact in dollars, thus reinforcing the dollar's status as the world’s reserve currency. This, he argued, has been crucial for the U.S. in maintaining economic stability, especially during the pandemic.

"If you're saying, 'Ok, [crypto] is going to be this digital property that will be used and the United States has this first mover advantage where we could be a leader in it,' why wouldn't we want that?" he said.

The conversation shifted to political implications when Melker asked about potential changes in the Democratic Party’s stance on bitcoin, especially with Vice President Kamala Harris possibly stepping in as the next presidential candidate. Rep. Khanna expressed hope for a more pro-innovation approach from the party, advocating for policies that embrace technological advancements and their economic benefits.