Haider Rafique, a leader at the crypto exchange OKX, says that setting up a national Bitcoin reserve could harm the market for Bitcoin and the US dollar.

Rafique told Cointelegraph that if a government owns a large amount of Bitcoin, it could affect prices by selling its Bitcoin, which would go against the idea of Bitcoin being neutral and not controlled by anyone.

He asked, “What will happen in a few years if a new government thinks this was a bad idea. ” Rafique added:

“Even though people from both parties support crypto now, it’s important to keep in mind that rules can change fast. ” As situations change, having a lot of BTC (Bitcoin) stored by a country could be a risk if they need to sell it.

In 2024, the German government sold 50,000 BTC, which kept the prices below $60,000, according to Rafique.

Many Bitcoin supporters are thinking a lot about creating a large Bitcoin reserve for countries. They believe that setting up a national Bitcoin treasury is a key step toward making Bitcoin the main global currency and the standard way to measure money.

Related: US lawmakers ask Saylor and Lee to help move forward with the Bitcoin reserve bill.

Risks to the US dollar and other money markets

Creating a Bitcoin reserve could cause problems that go beyond just the crypto markets and have a big impact on the overall economy, Rafique told Nanofes.

“The biggest impact on the economy would be that people start to lose trust in the dollar,” he said.

Creating a reserve of Bitcoin shows that the US dollar, which supports the world economy, is weak and cannot keep its value based only on economic strength, he said.

This could cause a big reaction in the financial world as investors move away from the US dollar and seek safer options like gold or the Swiss franc, Rafique said.

Investors would sell off risky investments, leading to many sales in financial markets. This could result in a big market crash as the markets react to big changes in global finance, he said.