Key Points
- Vice President J.D. Vance endorses Bitcoin and cryptocurrencies as a safeguard against governmental and corporate issues, as well as inflation.
- Vance downplays the perceived threat of stablecoins to the U.S. dollar, calling them a ‘force multiplier’.
U.S. Vice President J.D. Vance recently expressed support for Bitcoin and cryptocurrencies, describing them as a “genuine ground-up” innovation that positively impacts holders and users.
Vance’s Keynote Address
Speaking at the Bitcoin Conference in Las Vegas, Vance said, “50 million Americans own Bitcoin, and I believe that’s going to be 100 million before too long.” He also praised the influence of DeFi (decentralized finance), which is increasing financial inclusion among unbanked citizens.
Vance emphasized the role of crypto as a safeguard against various issues, including governments. He acknowledged the conservative aspects of crypto, explaining its use as a hedge against poor governance, inflation, political persecution, and consumer discrimination.
Crypto as a Hedge
He further stated, “Crypto is a hedge against bad policymaking from Washington, no matter what party is in control. It’s a hedge against skyrocketing inflation, which has eroded the real savings rate of Americans.”
To put things into perspective, Bitcoin’s annual inflation rate fell to 0.84% after the halving in April last year. This reduced the block rewards from 6.25 BTC to 3.125 BTC. The BTC issuance rate is expected to drop to 0.41% after the 2029 halving and fall to 0.05% by 2040.
On the other hand, the U.S. inflation rate has hovered around 3.4%, with concerns about spending and fiscal debt ($36 trillion) potentially diluting USD-based savings and purchasing power.
Vance also declared the Biden-era crypto-debanking (Operation ChokePoint 2.0) “dead” and mentioned the administration’s plans to establish regulatory clarity, particularly regarding stablecoins.
“We do not think stablecoins threaten the integrity of the U.S dollar. Quite the opposite. In fact, we view them as a force multiplier of our economic might,” he stated.
After the stablecoin bill, the GENIUS Act, is enacted into law, the focus will shift to the crypto market structure bill. Vance’s bullish stance on Bitcoin is not surprising, given that he is a known holder. According to CBS disclosure documents from 2024, Vance owned Bitcoin worth between $250k and $500k.
