Bram Kanstein, Head of Development at Onramp, has proposed that the Dutch government consider establishing a strategic reserve based on Bitcoin. In an open letter addressed to Finance Minister Elko Heinen and the Executive Board of the Dutch Central Bank, Kanstein outlined the advantages of Bitcoin in light of the growing challenges faced by traditional financial systems.

Key Argument: The current fiat money system, including the euro, suffers from excessive issuance, high inflation, and mounting national debt. Kanstein argues that this system is nearing its limits and risks further deterioration.

Why Bitcoin?

Kanstein emphasized Bitcoin's unique qualities: its supply is fixed, it is immune to inflation, and it operates independently of any government. These attributes make it a strong candidate for bolstering national financial stability.

In his letter, Kanstein referenced remarks by U.S. Federal Reserve Chairman Jerome Powell, who compared Bitcoin to gold, underscoring its potential as a safe-haven asset during economic uncertainty.

Geopolitical Context

Kanstein warned that ignoring Bitcoin could put the Netherlands at a disadvantage. The U.S. is already positioning itself as a leader in cryptocurrency adoption, and other countries, such as Poland and potentially China, are also exploring similar initiatives.

Funding Options

To finance the Bitcoin reserve, Kanstein suggested two options: selling a portion of the country’s gold reserves or issuing targeted government bonds. These approaches aim to minimize the financial burden on the national budget.

Conclusion

The proposal to create a Bitcoin reserve highlights a global shift toward cryptocurrency as both an investment and a strategic asset. According to Kanstein, adopting Bitcoin would help the Netherlands secure its financial stability and maintain its global competitiveness.