Cryptocurrency analyst James Van Straten has dismissed speculation that US President-elect Donald Trump might declare a Bitcoin strategic reserve through an executive order upon taking office, Yahoo Finance reports.
Van Straten dismissed the likelihood of such a public move, stating that Trump, while supportive of Bitcoin, would more likely accumulate the cryptocurrency discreetly. He argued that publicly declaring a Bitcoin reserve would drive up prices, undermining efforts to acquire it at favorable rates.
The analyst also suggested a more plausible scenario: Trump might restrict the sale of Bitcoins seized by the U.S. government. Currently, federal authorities hold 198,109 Bitcoins in forfeiture funds, according to data from Arkham Intelligence.
Speculation surrounding a potential national Bitcoin reserve continues to intensify, fueled by President-elect Donald Trump’s campaign promises. In line with this, Senator Cynthia Lummis has proposed the BITCOIN Act, which advocates for the U.S. Treasury Department to acquire one million Bitcoins over the next five years, with a stipulation that they remain untouched for at least two decades.
However, the idea of Bitcoin’s role in the national financial system is not limited to Lummis. Gabor Gurbacs, a former advisor at VanEck, recently sparked a wave of debate on social media by suggesting the Federal Reserve consider adopting Bitcoin as a hedge against its own policies. Gurbacs highlighted Bitcoin’s potential to diversify the Fed’s holdings and protect against inflation and monetary instability—key concerns for the Fed, especially given that U.S. Treasuries can be printed at will. He emphasized Bitcoin’s fixed supply as a natural counterbalance to monetary expansion, proposing that its adoption could serve as a check on the Fed’s influence over the money supply.
Meanwhile, former U.S. Treasury Secretary Lawrence Summers has voiced strong opposition to Trump’s proposal for a national Bitcoin reserve, calling it “crazy” and a strategy aimed at appeasing crypto-friendly campaign donors. Summers criticized the idea, arguing it lacks any economic rationale and serves no public good. “I understand the logic behind a national oil reserve or accumulating gold in Fort Knox a century ago, but Bitcoin?” Summers said. “It’s a sterile asset with no intrinsic value, and accumulating it would simply pander to special interests.”
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