Former US Treasury Secretary calls Bitcoin reserve ‘crazy’ idea
Larry Summers said in an interview he understands other commodities' reserves, but calls Bitcoin a 'sterile inventory.'
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 Trump’s 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 state’s $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 administration’s 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, Poland’s libertarian presidential candidate, Sławomir Mentzen, wants to allow the country to hold BTC as a strategic reserve.
Mentioned in this article
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Today's Fear and Greed Index is 73, and the level is still Greedy
PNUT briefly broke through $0.77, with a 24-hour increase of 11.4%
Trader Eugene: I am optimistic about MOODENG, CHILLGUY, PNUT and GOAT and plan for the long term
Analyst: It seems reasonable for Amazon to keep a small portion of its cash in BTC
Trending news
MoreCrypto prices
More
