{"id":36100,"date":"2025-07-10T06:46:53","date_gmt":"2025-07-10T06:46:53","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=36100"},"modified":"2025-07-10T06:46:53","modified_gmt":"2025-07-10T06:46:53","slug":"bitcoin-forces-global-policy-trilemma-on-central-banks","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=36100","title":{"rendered":"Bitcoin Forces Global Policy Trilemma on Central Banks"},"content":{"rendered":"<div>\n<p>\u201cBitcoin has effectively cornered the world\u2019s central banks, and there is no way out,\u201d said author Adam Livingston on July 9.<\/p>\n<p>He added that the banks face an \u201cunprecedented challenge,\u201d in that they cannot print <a href=\"https:\/\/cryptopotato.com\/bitcoin-records-new-all-time-high-breaks-above-mays-peak\/\" data-wpel-link=\"internal\">Bitcoin<\/a> to defend their currency, which creates a \u201cpolicy trilemma.\u201d<\/p>\n<p>Policymakers essentially have three choices: they can raise interest rates to defend the currency through higher yields, deplete foreign currency reserves to support the domestic currency, or they can \u201cjoin the migration,\u201d and purchase Bitcoin themselves, \u201clegitimizing the very trend they\u2019re trying to counter,\u201d according to Livingston.<\/p>\n<blockquote>\n<p>\u201cThis represents a fundamental shift in the balance of power between Bitcoin and governments. The free market is going to win.\u201d<\/p>\n<\/blockquote>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">Bitcoin has effectively cornered the world\u2019s central banks and there is no way out.<\/p>\n<p>The banks face an unprecedented challenge: they cannot print Bitcoin to defend their currency.<\/p>\n<p>This creates a policy trilemma where authorities must choose between:<\/p>\n<p>Raise Interest Rates:\u2026<\/p>\n<p>\u2014 Adam Livingston (@AdamBLiv) <a href=\"https:\/\/twitter.com\/AdamBLiv\/status\/1942998863662424494?ref_src=twsrc%5Etfw\" data-wpel-link=\"external\" target=\"_blank\">July 9, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2>Devaluation of Fiat<\/h2>\n<p>There are only a handful of countries that have adopted a national strategic Bitcoin reserve. El Salvador and Bhutan are the two official ones with 6,089 and 13,029 BTC held, respectively.<\/p>\n<p>While several others, such as the United States, the United Kingdom, China, and Ukraine, are unofficially holding the asset but have not declared national reserves.<\/p>\n<blockquote>\n<p>\u201cThe era of fiat optionality is quietly closing, and the game theory around sovereign adoption is heating up,\u201d <a href=\"https:\/\/x.com\/profcryptotalks\/status\/1943002463344165324\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"external\">said<\/a> crypto YouTuber \u2018Professor Crypto.\u2019<\/p>\n<\/blockquote>\n<p>Renowned analysts and crypto entrepreneurs such as Anthony Pompliano, Willy Woo, and <a href=\"https:\/\/cryptopotato.com\/bitcoin-and-jpmorgan-will-soar-on-the-back-of-big-bank-stablecoins-hayes\/\" data-wpel-link=\"internal\">Arthur Hayes<\/a> have all predicted that fiat devaluation through money printing will continue.<\/p>\n<blockquote>\n<p>\u201cThe main reason why Bitcoin was made is debasement, fiat money printing by central banks, resulting in hyperinflation,\u201d <a href=\"https:\/\/x.com\/100trillionUSD\/status\/1937563705526415649\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"external\">said<\/a> Woo in June.<\/p>\n<\/blockquote>\n<p>\u201cAll major governments are too far in debt; they will have to print and monetize to repay it,\u201d stated Kalypsus Research on Thursday.<\/p>\n<blockquote>\n<p>\u201cThis is why investors are rotating to Bitcoin. It can\u2019t be devalued by governments printing more money.\u201d<\/p>\n<\/blockquote>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">China Media Expect More Fiscal Stimulus: BBG<\/p>\n<p>The amount of global debt that will be issued in the next decade will double the current debt load, and central banks will be monetizing it all.<\/p>\n<p>\u2014 zerohedge (@zerohedge) <a href=\"https:\/\/twitter.com\/zerohedge\/status\/1943118247424938372?ref_src=twsrc%5Etfw\" data-wpel-link=\"external\" target=\"_blank\">July 10, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2>Slow Adoption, CBDC Push<\/h2>\n<p>However, central banks are not likely to rush into embracing Bitcoin just yet.\u00a0The job of a central bank is to dictate monetary policy, price stability, and control the flow of funds within an economy, which includes its citizens.<\/p>\n<p>Bitcoin represents a significant threat to their control mechanisms because people can transact between themselves or through decentralized exchanges without banking and government oversight or control.<\/p>\n<p>The problem is when users want to cash out to fiat, and that is when the banks can regain authority by controlling exit ramps as the chokepoint for governments to exert influence.<\/p>\n<p>Many countries allow regulated crypto trading, which <a href=\"https:\/\/cryptopotato.com\/crypto-bros-targeted-in-britains-latest-tax-crackdown\/\" data-wpel-link=\"internal\">can be taxed<\/a>, and often <a href=\"https:\/\/cryptopotato.com\/thailand-finance-regulators-to-restrict-worlds-first-tokenized-govt-bonds\/\" data-wpel-link=\"internal\">restrict crypto payments<\/a>, which circumvent the banking system.<\/p>\n<p>Additionally, central banks also fear loss of control over the money supply, especially with stablecoins and crypto-dollarization. This is why many are pursuing CBDCs (Central Bank Digital Currencies), Pakistan being the most recent, as highly controllable digital alternatives.<\/p>\n<p>The post <a href=\"https:\/\/cryptopotato.com\/bitcoin-forces-global-policy-trilemma-on-central-banks\/\" rel=\"nofollow\">Bitcoin Forces Global Policy Trilemma on Central Banks<\/a> appeared first on <a href=\"https:\/\/cryptopotato.com\/\" rel=\"nofollow\">CryptoPotato<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>\u201cBitcoin has effectively cornered the world\u2019s central banks, and there is no way out,\u201d said author Adam Livingston on July 9. He added that the banks face an \u201cunprecedented challenge,\u201d in that they cannot print Bitcoin to defend their currency, which creates a \u201cpolicy trilemma.\u201d Policymakers essentially have three choices: they can raise interest rates [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-36100","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/36100","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=36100"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/36100\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=36100"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=36100"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=36100"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}