Wharton professor warns bitcoin could threaten U.S. dollar’s reserve status
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Jeremy Siegel, a finance professor at the Wharton School and chief economist at WisdomTree, has issued a stark warning about Bitcoin’s potential role in the global economy.
Speaking to CNBC, Siegel suggested that Bitcoin may pose a serious challenge to the U.S. dollar as the world’s leading reserve currency.
Discussing the recently enacted GENIUS Act: a bipartisan law signed on July 18 mandating a complete regulatory framework for stablecoins — Siegel said, Bitcoin is “a threat.”
“What is interesting is that Bitcoin itself is a threat to the dollar as a reserve currency.”
Bitcoin vs. the Euro and BRICS
Siegel noted that while U.S. lawmakers are working toward clearer rules for digital assets, some late additions to the crypto bill could serve as “important catalysts” for the industry, potentially easing inefficiencies in the global financial system.
He added that although the BRICS countries have long been rumored to be planning an alternative to the dollar, Bitcoin represents a more tangible challenge.
“I didn’t think the BRICS were really any threat at all, but the opponent actually has a chance.”
Siegel tied this outlook to broader shifts in international finance, which he described as being stuck in a “frozen state for years.” He argued that cross-border transactions remain “too slow and too expensive” and that crypto-based systems could bring much-needed efficiency.
Russia Enters the Conversation
On September 8, Vladimir Putin’s special advisor Anton Kobyakov accused the U.S. of trying to address its ballooning debt and “rewrite the rules” with crypto.
Reports indicate that Russia is now preparing to roll out its own central bank digital currency.
Bitcoin as “Digital Gold”
Beyond payments, Siegel emphasized Bitcoin’s reputation as a store of value, often referred to as “digital gold.”
Its capped supply of 21 million coins has made it attractive to investors wary of inflation and monetary expansion.
During past periods of heavy fiscal and monetary stimulus — such as in 2020’s pandemic era — Bitcoin surged in value, reinforcing its role as a hedge.
Michael Sonnenshein of Grayscale echoed this point:
“The amount of fiscal stimulus that has been injected into the system … has really caused investors to think about what constitutes a store of value, what constitutes an inflation hedge and how they should protect their portfolios.”
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