Former US Treasury Secretary Lawrence Summers has dismissed President-elect Donald Trump’s plan to create a national Bitcoin reserve as “crazy” and motivated by special interest donors. The proposal, which aims to hold onto approximately 1 million Bitcoins worth $19 billion, was floated during the campaign and backed by some Republicans, including Wyoming Senator Cynthia Lummis.
Summers expressed skepticism about the idea, citing its impracticality and lack of justification for accumulating a digital asset like Bitcoin. He stated that while he recognizes the need to support financial innovation, there is no logical reason for the government to accumulate a “sterile inventory” of cryptocurrency.
However, Summers acknowledged some validity in Trump’s rhetoric on crypto, highlighting the importance of regulatory reform. He has previously worked with the Digital Currency Group and understands the potential benefits of Bitcoin.
Critics like Avik Roy, president of the Foundation for Research on Equal Opportunity, have argued that a Bitcoin reserve is not a solution to the country’s debt problem. They emphasize the need for budgetary reforms rather than relying solely on unconventional financial solutions.
Source: https://cointelegraph.com/news/former-us-treasury-secretary-slams-national-bitcoin-reserve-crazy