Key Takeaways
- Larry Summers dismissed the idea of a national Bitcoin reserve as 'crazy.'
- The 'Bitcoin Act' proposes creating a federal Bitcoin reserve.
- States like Texas and Pennsylvania are pursuing their own Bitcoin funds.
Former U.S. Treasury Secretary Larry Summers criticized the idea of a national Bitcoin reserve during a December 6 Bloomberg interview, labeling the concept “crazy.”
While acknowledging the rationale for reserves in commodities like oil and gold, Summers argued that Bitcoin lacks practical support value.
Summers asked:
Of all the prices to support, why would the government choose to support by accumulating a sterile inventory, a bunch of Bitcoin?
He suggested that such proposals pander to “generous special interest campaign contributors.”
Strategic reserve momentum
The proposal for a U.S. Strategic Bitcoin Reserve has gained traction following advocacy from President-elect Donald Trump’s Crypto Advisory Council.
The idea was first highlighted at the Bitcoin 2024 conference, with lawmakers like Senator Cynthia Lummis (R-WY) introducing the “Bitcoin Act,” which seeks to establish a federal BTC reserve.
States
The momentum isn’t confined to federal initiatives.
Dennis Porter, founder of the Satoshi Act Fund, disclosed ongoing discussions with Texas state officials about a state Bitcoin fund.
Pennsylvania has already seen a bill introduced by Representative Mike Cabell to create a BTC reserve using its $7 billion fund.
Internationally, Brazil and Poland have joined the conversation.
Brazilian lawmakers proposed allocating $19 billion to a Bitcoin reserve, while Polish presidential candidate Sławomir Mentzen has advocated for strategic BTC holdings.
