Former US Treasury Secretary calls Bitcoin reserve crazy idea
Former US Secretary of the Treasury Larry Summers said in an interview with Bloomberg that the idea of a national Bitcoin (BTC) reserve is crazy.
Summers said he understands the concept of other commodities reserves, such as oil and gold, but argued:
Of all the prices to support, why would the government choose to support by accumulating a sterile inventory, a bunch of Bitcoin? There is no reason other than to pander to generous special interest campaign contributors.
His remarks follow reports that President-elect Donald Trumps Crypto Advisory Council is expected to establish the Strategic Bitcoin Reserve.
The idea of a national Bitcoin reserve surfaced during the Bitcoin 2024 conference earlier this year, where both Trump and Robert F. Kennedy Jr. made keynote speeches, along with several lawmakers, including Senator Cynthia Lummis (R-WY), who introduced the Bitcoin Act legislation proposing the creation of such an institute at the event.
Bitcoin reserve idea gaining traction
The idea of creating Bitcoin reserves is gaining traction beyond institutions now, with lawmakers and politicians around the world warming to the concept.
Satoshi Act Fund founder Dennis Porter recently revealed he is in discussions with Texas state officials to introduce legislation for a strategic Bitcoin fund. Additionally, on Nov. 14, Representative Mike Cabell introduced a bill to create a BTC reserve in Pennsylvania using the states $7 billion fund.
Porter said Texas and Pennsylvania are the first of many and claimed that up to 10 more US states will likely follow suit before the year ends in an attempt to front-run the Trump administrations plans for a federal Bitcoin reserve.
The examples in the US are motivating politicians in other countries. A Brazilian lawmaker pushed for a Bitcoin reserve in the country through legislation introduced on Nov. 26, which would allocate up to nearly $19 billion in BTC.
Meanwhile, Polands libertarian presidential candidate, Sawomir Mentzen, wants to allow the country to hold BTC as a strategic reserve.
The post Former US Treasury Secretary calls Bitcoin reserve crazy idea appeared first on CryptoSlate.
Read more: https://cryptoslate.com/former-us-treasury-secretary-calls-bitcoin-reserve-crazy-idea/
Text source: CryptoSlate
