When Bitcoin becomes a national reserve asset.

The arrival of Kevin Warsh, the new Fed chairman, could accelerate the de-leveraging process and force a major re-price of risky assets. At the same time, the US is establishing a Strategic Bitcoin Reserve and paving the way for full legalization of stablecoins, representing an upgrade from a fiat to a digital system. Market volatility, therefore, may not be a sign of collapse, but rather a “system update” to the new financial regulations that could propel Bitcoin into a global benchmark asset role in the future.

Article by : Chanon Charasuttikul, Co-Founder and CEO of Forward Labs, a blockchain fintech startup, and CEO of INTNODE, is an expert in analyzing investments in digital assets.

If we're going to talk about resetting the global financial system in 2026, we need to go back and look at the existing system, which is the ability of central banks to print money to support the economy, or what we commonly know as QE (Quantitative Easing).

The world might think that the US Federal Reserve is printing money without any backing, but in reality, the value of the USD can be seen as being backed by indicators of a superpower's status, such as military budgets and the economic status of the United States. This is why military spending has increased, and why Trump has been trying to develop the American economy.

In the Web 1.0 financial system, or Web 2 Financial System, the U.S. Federal Reserve (Fed) acts as a central server managing all liquidity. The problem is, when this server releases too much money, causing its balance sheet to balloon to $6.6 trillion, the consequence is inflation, which distorts the value of all assets in the world.

But what happened in February 2026 was the most interesting turning point, when Donald Trump nominated Kevin Warsh to be the new Fed chairman.

The question is, why did the selection of Kevin Warsh cause such a stir in the crypto world?

Warsh is a true "hawk" who believes in extreme financial discipline. He doesn't believe in printing money to solve problems. Many asset prices today are future prices, meaning they represent expected future values ​​of the company or asset, not their true intrinsic value (values ​​estimated forward, based on market liquidity). Warsh doesn't see it that way; he focuses on the intrinsic value of an asset, not on market trends or overbought prices. This is a process called "financial de-leveraging," which, in the short term, forces all risky assets to reprice themselves.

But this is where the Web3 narrative begins to work.

While the Fed, under Warsh's leadership, was hardening the USD, the government simultaneously signed an executive order to establish the Strategic Bitcoin Reserve, or a national Bitcoin reserve.

Think about this… In terms of computer systems, this is about moving a security database from something previously tied to “trust in individuals” (fiat-based) to something else. "Mathematical deficiency" (Math-based) instead

The US government's stockpiling of over $2.9 billion worth of Bitcoin in its reserves and its prohibition on its sale is an acknowledgment that in the "New Economy," Bitcoin functions as hard money, operating on a protocol that cannot be interfered with, much like how we viewed gold as a safe haven in the past.

Furthermore, legislation like the GENIUS Act has also transformed stablecoins into... "Digital Pipe" Being 100% legal allows the dollar to circulate in the DeFi world without having to go through the slow banking system. This is a true upgrade of the financial operating system (Financial OS) from the analog era to the digital settlement era.

The cash will then be held by digital asset exchanges, which are private companies that use the funds to buy government bonds, such as Circle.

The volatility we've been seeing on the screen lately... for me, it's a "System Update".

According to the principles of a robust system, eliminating junk data or low-quality liquidity strengthens the system's foundation. Bitcoin's correction to test the key support level around $60,000, after hitting a new high of $126,000, is a process of liquidating leverage to accommodate "cold money" from institutional and governmental players who are about to become the main players in the market.

The future of finance may not lie solely in when the Fed will cut interest rates, but rather in how much confidence the world has in a clear and verifiable "new digital world order."

If this reset proceeds, we might see Bitcoin become the "ultimate reserve asset" of the new world, one that no one can simply recreate by pressing Ctrl+P anymore.

Article by

Chanon Charasutthikul
Co-founder and CEO of Forward Labs, a blockchain fintech startup.
And the CEO of INTNODE, an expert in analyzing investments in digital assets.