Crying Out Challenge In the Center of the Dollar

Robert F. Kennedy Jr., the nephew of former U.S. President John F. Kennedy and current U.S. presidential candidate, announced a plan to make the 'Bitcoin(BTC) Standard', declaring a new challenge for dollar hegemony.

Candidate Kennedy Jr. mentioned the issuance of U.S. government bonds linked Bitcoin in a speech at the 2024 campaign event Hilde Divide Pack on the 19. July and insisted on the revival of the U.S. economy.

He said "We will stabilize the U.S. economy by supporting the U.S. dollar with 'hard assets' including gold, silver, and Bitcoin," in a speech. He highligted "First of all, we will issue U.S. government bonds with assets mentioned as hard assets, and we will increase the amount of the assets for U.S. bonds."

Kennedy Jr.'s plan to be "sneaky" reminded me of his uncle, former U.S. President John F. Kennedy, in the crucial part. That is the challenge to the dollar.

Former President John F. Kennedy tried to bring the U.S. Federal Reserve's right to issue dollars to the government. President Kennedy attempted to issue the greenbacks about 100 years after former President Lincoln was assassinated after issuing the government-issued dollar 'Greenbacks'.

President Kennedy's plan to issue greenbacks has been criticized by U.S. financial institutions for causing inflation due to a lack of linkage with safe assets such as precious metals, and President Kennedy was also suddenly assassinated. In this regard, there was an interpretation in the world that President Kennedy was also assassinated for the same reason as Lincoln after challenging the authority of the Fed, which was formed by U.S. financial institutions.

About 60 years later, former President Kennedy's nephew, Robert F. Kennedy Jr., announced the link between Bitcoin and U.S. government bonds, the core of dollar hegemony.

Candidate Kennedy Jr.'s plan to issue Bitcoin-linked U.S. government bonds reminds us of the gold standard of the 1944 Bretton Woods system, in which $35 is linked to an ounce of gold.

But its essence is a challenge to the dollar and U.S. government bonds that they are just a credit asset and credit currency.

Since former President Nixon abolished the gold standard in 1971, no official assets have been linked to the dollar. The dollar is only a credit currency due to the power and credit of the world's strongest country, and the U.S. government bonds printed by the U.S. government based on the dollar are credit assets. Therefore, the purchase of dollars and U.S. government bonds was interpreted as a purchase of the power and credit of the U.S., the world's strongest country.

Meanwhile, Kennedy Jr., a candidate running for the 2024 U.S. presidential election, announced the link between U.S. government bonds and Bitcoin. The act can be interpreted as acknowledging the incompleteness of the dollar and U.S. government bonds, which are 100% credit currency and credit assets, while transferring some of dollar power to Bitcoin.

It also represents a challenge to those who own and distribute them. This is because the linkage between Bitcoin and U.S. government bonds means a decrease in the potion of dollars in U.S. government bond reserves, while at the same time asking many questions about the intrinsic value of dollars and U.S. government bonds.

Six decades after former President Kennedy challenged the dollar, his nephew Kennedy Jr. challenged the dollar again.

Kennedy Jr.'s approval rating ranks second in the U.S. Democratic Party, coupled with unusual moves such as the Kennedy's reputation, anti-vaccination, and criticism of the U.S. government's public health measures during the pandemic.

Recently, Kennedy Jr. criticized the Biden administration's excessive cryptocurrency taxation plan, while pledging to exempt Bitcoin from capital gains taxes. Kennedy Jr. is challenging his dream of changing ownership of the dollar with cryptocurrency and the cryptocurrency community on his back. Kennedy Jr.'s Bitcoin standard plan Is a challenge to The dollar following his uncle.

권승원 기자 ksw@