The reported death of US dollar dominance has been greatly exaggerated. The dollar’s demise has been repeatedly prophesied, supposedly threatened by any number of currencies including the euro, the yuan, and recent hints of a gold-backed currency from the BRICS countries (Brazil, Russia, India, and China).

Will the US dollar maintain its global dominance? Is there a role for bitcoin in US policy?

In a recent paper titled “The Treasury Standard: Causes and Consequences,” which was published in an edited volume of articles related to bitcoin, economist and AIER SMP Senior Fellow Joshua R. Hendrickson explores the historical relationship between central banking and national security. He finds that the US dollar dominance of the international monetary system and associated demand for US Treasury bonds helps reinforce America’s global military regime.

Further, the paper demonstrates how American officials and policies have actively contributed to expanding this system.

Hendrickson dubs this system “The Treasury Standard.” His paper has important implications for the future of bitcoin and how it might be treated by governments.

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