National Bitcoin Reserve Slammed as 'Crazy'

Src: CNBC

Lawrence Summers, the former US Treasury Secretary has strongly criticized the proposal for the government to establish a national Bitcoin reserve calling the idea as "crazy".

Summers articulated his concerns in a recent appearance on Bloomberg Television's Wall Street Week, saying, "Some of what is being said - this idea that we should have some kind of national Bitcoin reserve - is crazy".

According to Summers, there is no justification for such a reserve other than to cater to wealthy special-interest campaign contributors.

Summers underlined that although encouraging financial innovation is important, there is no justification for holding Bitcoin as a government asset. He called it "non-productive" and questioned why the government would decide to stock a volatile asset like Bitcoin, drawing a negative comparison to the previous building of reserves for gold and oil.

The remarks of Summers come in the context of wider discussions about fiscal responsibility and the political challenges of managing federal expenditures, especially as the incoming administration under President-elect Donald Trump considers various economic strategies.

Summers' criticism highlights potential conflicts with sound fiscal policy and governance, demonstrating skepticism towards the practicality and motivations behind creating a national Bitcoin reserve.

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