he idea of a national Bitcoin reserve came under severe criticism from former US Treasury Secretary Larry Summers who described the idea as being crazy. During an interview with Bloomberg he questioned how anyone could accumulate what he calls a ‘sterile inventory’ of Bitcoin, and added that the only reason given for the activity is simply to appease certain special interest contributors.
Political Momentum Builds
Other than this, Summers’ criticism notwithstanding, the Bitcoin reserve idea is enjoying increasing political support. Donald Trump’s Crypto Advisory Council is said to be preparing on speaking terms about starting a Strategic Bitcoin Reserve. It has even been picked up by lawmakers currently, with Senator Cynthia Lummis proposing the “Bitcoin Act” to formalize such a bill.
Growing State-Level Interest
The movement does not confine itself to the federal discussions. Today Texas and Pennsylvania are discussing strategic Bitcoin funds. Dennis Porter, the founder of Satoshi Act Fund stated up to 10 US states may pass similar laws before year end.
International Implications
It has noted that the US trend is even inspiring politicians of the other world. The members of Brazilian Congress for $18.9 billion in bitcoins, while Poland’s libertarian presidential candidate wants to preserve the currency.
Broader Cryptocurrency Debate
Summers’ critique can be seen as contributing to one of the most heated discussions of the status of cryptocurrencies as a serious asset. It is this stark contrast between the old school finance hard-heads and the new age Crypto currency geeks.
Summers' Sharp Critique
The bitcoin reserve proposal is still a subject of hot debate, and it has shown how politicised, technical and novel the entire concept of money is.
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