The US Treasury Department has released a new report on Bitcoin! "Digital Gold..."

The US Treasury Department recently likened Bitcoin to "digital gold" in a statement, emphasizing its primary use as a store of value in the decentralized finance (DeFi) ecosystem.

The comments came at a time when digital assets continue to grow steadily, fueled by the increasing interest in cryptocurrencies such as Bitcoin and Ethereum, as well as stablecoins.

The Ministry of Treasury acknowledged in its report that digital assets are rapidly growing, but pointed out that this growth stems from a relatively small base. The report stated, “Digital assets have witnessed rapid growth, albeit from a small base.” However, according to the report, the market value of cryptocurrencies remains low compared to traditional financial and real assets.

According to the Treasury, the adoption of digital assets among households and industries is primarily for investment purposes, and speculative interest plays a significant role in the expansion of the market.

The Ministry of Treasury pointed out the evolving role of Bitcoin in the financial ecosystem, stating that Bitcoin has emerged as a store of value similar to gold. The report stated, "The primary use of Bitcoin appears to be as a store of value in the decentralized finance (DeFi) world, i.e., 'digital gold'."

While Bitcoin draws attention as a speculative asset, its attractiveness as a protection against inflation and economic uncertainty continues to increase, and it is compared to traditional safe haven assets such as gold.

The report also highlighted efforts to leverage blockchain and distributed ledger technology (DLT) to develop innovative applications and improve the clearing and settlement processes of the traditional financial market.

Despite the increasing interest in digital assets, the Treasury noted that the rise of these assets does not reduce the demand for Treasury bonds.

*This is not investment advice.