Former U.S. Treasury Secretary Lawrence Summers has criticized President-elect Donald Trump’s proposal to establish a national Bitcoin reserve, describing it as “crazy” and a tactic to appease crypto-friendly campaign donors.
Speaking to Bloomberg TV on December 6, Summers argued that such a move lacks economic rationale and serves no public interest.
“This idea of creating a national Bitcoin reserve is crazy,”
Summers remarked.
“I understand the logic behind a national oil reserve or accumulating gold in Fort Knox a century ago, but Bitcoin? It’s a sterile asset with no intrinsic value, and accumulating it would simply pander to special interests.”
Trump had previously suggested that the U.S. should retain the 198,000 seized Bitcoin—worth over $19 billion, according to Arkham Intelligence—and potentially expand its holdings. One of his Republican allies, Senator Cynthia Lummis, has already proposed a bill for the government to purchase 1 million BTC, equivalent to 5% of the total Bitcoin supply, and hold it for at least two decades.
Despite his criticism of Trump’s Bitcoin reserve idea, Summers expressed partial agreement with the president-elect on the broader crypto industry, highlighting the need for balanced regulation.
“There are areas where financial innovation, including crypto, should be supported,”
Summers noted.
“It’s also true that overzealous regulators may have over-regulated parts of the crypto sector.”
Summers, who served as Treasury Secretary from 1999 to 2001 under the Clinton administration, has past ties to the crypto industry. In 2016, he acted as an adviser to Digital Currency Group, a prominent crypto conglomerate.
Meanwhile, South Korea is also grappling with the idea of a national Bitcoin reserve. On November 24, Financial Services Commission (FSC) Chairman Kim Byung-hwan called the concept “a distant story at the moment.” Kim noted the proactive crypto strategies being discussed in countries like the U.S. but emphasized that South Korea’s focus remains on integrating its digital asset market into the broader financial system.
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