Former US Treasury Secretary calls Bitcoin reserve ‘crazy’ idea

Former US Secretary of the Treasury Larry Summers said successful an interrogation with Bloomberg that the thought of a nationalist Bitcoin (BTC) reserve is “crazy. “

Summers said helium understands the conception of different commodities’ reserves, specified arsenic lipid and gold, but argued:

“Of each the prices to support, wherefore would the authorities take to enactment by accumulating a sterile inventory, a clump of Bitcoin? There is nary crushed different than to pander to generous peculiar involvement run contributors.”

His remarks follow reports that President-elect Donald Trump’s Crypto Advisory Council is expected to found the “Strategic Bitcoin Reserve.”

The thought of a nationalist Bitcoin reserve surfaced during the Bitcoin 2024 league earlier this year, wherever some Trump and Robert F. Kennedy Jr. made keynote speeches, on with respective lawmakers, including Senator Cynthia Lummis (R-WY), who introduced the “Bitcoin Act” authorities proposing the instauration of specified an institute astatine the event.

Bitcoin reserve thought gaining traction

The thought of creating Bitcoin reserves is gaining traction beyond institutions now, with lawmakers and politicians astir the satellite warming to the concept. 

Satoshi Act Fund laminitis Dennis Porter precocious revealed helium is successful discussions with Texas authorities officials to introduce legislation for a strategical Bitcoin fund. Additionally, connected Nov. 14, Representative Mike Cabell introduced a bill to make a BTC reserve successful Pennsylvania utilizing the state’s $7 cardinal fund.

Porter said Texas and Pennsylvania are the archetypal of galore and claimed that up to 10 much US states volition apt travel suit earlier the twelvemonth ends successful an effort to front-run the Trump administration’s plans for a national Bitcoin reserve.

The examples successful the US are motivating politicians successful different countries. A Brazilian lawmaker pushed for a Bitcoin reserve successful the state done authorities introduced connected Nov. 26, which would allocate up to astir $19 cardinal successful BTC.

Meanwhile, Poland’s libertarian statesmanlike candidate, Sławomir Mentzen, wants to allow the country to clasp BTC arsenic a strategical reserve.

The station Former US Treasury Secretary calls Bitcoin reserve ‘crazy’ idea appeared archetypal connected CryptoSlate.