Former US Treasury Secretary Criticizes Trump’s 5-Year Bitcoin Reserve Plan
Key Points:
- Former US Treasury Secretary Lawrence Summers criticized the proposal for a national Bitcoin reserve.
- President-elect Trump’s allies propose expanding federal Bitcoin holdings to reduce national debt, with plans for potential revaluation of gold assets to fund purchases.
Former US Treasury Secretary Lawrence Summers lambasted the idea of the government creating a national Bitcoin reserve, referring to it as an unworkable and political concept.
Read more: Strategic Bitcoin Reserve Driven by 5-Year Commitment to Buy BTC
Former US Treasury Secretary Discounts National Bitcoin Reserve
Speaking on Bloomberg Television’s Wall Street Week, the former US Treasury Secretary said:
“Some of what is being said — this idea that we should have some kind of national Bitcoin reserve — is crazy.”
Summers’ comments come amid proposals by allies of President-elect Donald Trump, including the idea of expanding federal holdings of Bitcoin, which are estimated at 200,000 tokens, acquired originally through asset seizures.
Proponents argue that the Treasury could use Bitcoin’s expected appreciation to retire the national debt while decentralizing storage and revaluing gold certificates to finance additional purchases.
While giving kudos to the potential of financial innovation, Summers did draw a line. “Crypto has been over-regulated by over-zealous regulators,” he said, emphasizing the need for balanced oversight.
The former US Treasury Secretary is also in doubt over the rationality of government intervention to support Bitcoin. According to him, it is not like maintaining an oil reserve or holding gold.
“Why would the government choose to support, by accumulating a sterile inventory, a bunch of Bitcoin?”
Bitcoin Surges Beyond $104K Amid Pro-Crypto Policies
Separately, Summers also voiced scepticism over proposals to cut federal spending by $2 trillion, which was suggested by Elon Musk, who is due to co-chair the Department of Government Efficiency advisory panel. He noted that the entire federal payroll comes in under that figure, and that would be quite an endeavour.
Meanwhile, Bitcoin continued its astral rise, crossing 104,000$ amidst optimism. According to analysts, this price increase can be explained by Trump’s being a crypto-friendly president and good old post-halving dynamics.
The reserve proposal further vitalized the crypto sphere, with many predicting the possible surge in institutional attractiveness for Bitcoin, hence accelerating its rate of growth.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Author
News
Former US Treasury Secretary Criticizes Trump’s 5-Year Bitcoin Reserve Plan
Key Points:
- Former US Treasury Secretary Lawrence Summers criticized the proposal for a national Bitcoin reserve.
- President-elect Trump’s allies propose expanding federal Bitcoin holdings to reduce national debt, with plans for potential revaluation of gold assets to fund purchases.
Former US Treasury Secretary Lawrence Summers lambasted the idea of the government creating a national Bitcoin reserve, referring to it as an unworkable and political concept.
Read more: Strategic Bitcoin Reserve Driven by 5-Year Commitment to Buy BTC
Former US Treasury Secretary Discounts National Bitcoin Reserve
Speaking on Bloomberg Television’s Wall Street Week, the former US Treasury Secretary said:
“Some of what is being said — this idea that we should have some kind of national Bitcoin reserve — is crazy.”
Summers’ comments come amid proposals by allies of President-elect Donald Trump, including the idea of expanding federal holdings of Bitcoin, which are estimated at 200,000 tokens, acquired originally through asset seizures.
Proponents argue that the Treasury could use Bitcoin’s expected appreciation to retire the national debt while decentralizing storage and revaluing gold certificates to finance additional purchases.
While giving kudos to the potential of financial innovation, Summers did draw a line. “Crypto has been over-regulated by over-zealous regulators,” he said, emphasizing the need for balanced oversight.
The former US Treasury Secretary is also in doubt over the rationality of government intervention to support Bitcoin. According to him, it is not like maintaining an oil reserve or holding gold.
“Why would the government choose to support, by accumulating a sterile inventory, a bunch of Bitcoin?”
Bitcoin Surges Beyond $104K Amid Pro-Crypto Policies
Separately, Summers also voiced scepticism over proposals to cut federal spending by $2 trillion, which was suggested by Elon Musk, who is due to co-chair the Department of Government Efficiency advisory panel. He noted that the entire federal payroll comes in under that figure, and that would be quite an endeavour.
Meanwhile, Bitcoin continued its astral rise, crossing 104,000$ amidst optimism. According to analysts, this price increase can be explained by Trump’s being a crypto-friendly president and good old post-halving dynamics.
The reserve proposal further vitalized the crypto sphere, with many predicting the possible surge in institutional attractiveness for Bitcoin, hence accelerating its rate of growth.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Other Posts
Related Posts
Latest
BTFD’s Beta Game Goes Live as Dogwifhat Dips and Ponke Holds Steady: Best Meme Coins to Join This Weekend
Top Performing Crypto in December 2024 — A Chance for Unmatched Gains!
Qubetics: $0.031 Today, $0.25 Tomorrow – The Best Crypto with 100x Potential as EOS Partners with Ceffu and Polkadot Targets $6.50
Press Release
BTFD’s Beta Game Goes Live as Dogwifhat Dips and Ponke Holds Steady: Best Meme Coins to Join This Weekend
Top Performing Crypto in December 2024 — A Chance for Unmatched Gains!
