The United States Treasury Department has acknowledged Bitcoin as a “digital gold,” emphasizing its primary role as a store of value.

Alongside this recognition, the Treasury highlighted the growing significance of stablecoins, which are driving demand for Treasury bills in the evolving financial landscape.

Treasury Acknowledges Bitcoin and Stablecoins

The Treasury’s report underscores the swift expansion of digital assets, including Bitcoin, Ethereum, and stablecoins, but notes that the market remains small compared to traditional financial instruments like US government bonds.

“Primary use case for Bitcoin seems to be a store of value aka ‘digital gold’ in a decentralized finance (DeFi) world,” the Treasury stated.

The financial regulator noted that Bitcoin has established itself as a store of value akin to gold. According to the report, Bitcoin’s market value surged from $6.4 billion in 2015 to $134 billion in 2019 and further skyrocketed to approximately $1.3 trillion in 2024. This growth reflects heightened interest in decentralized finance (DeFi) and digital tokens.

Indeed, the report arrives amid growing comparisons of Bitcoin to gold, including recent remarks by Federal Reserve Chairman Jerome Powell. This has bolstered optimism within the crypto market, which sees Bitcoin as a key component of the financial future.

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Author: Oluwapelumi Adejumo