Former US Treasury Secretary calls Bitcoin reserve ‘crazy’ idea Former US Treasury Secretary calls Bitcoin reserve ‘crazy’ idea
Larry Summers said in an interview he understands other commodities' reserves, but calls Bitcoin a 'sterile inventory.'
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Updated: Dec. 6, 2024 at 8:22 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Former US Secretary of the Treasury Larry Summers said in an interview with Bloomberg that the idea of a national Bitcoin (BTC) reserve is โcrazy. “
Summers said he understands the concept of other commoditiesโ reserves, such as oil and gold, but argued:
“Of all the prices to support, why would the government choose to support by accumulating a sterile inventory, a bunch of Bitcoin? There is no reason other than to pander to generous special interest campaign contributors.”
His remarks follow reports that President-elect Donald Trumpโs Crypto Advisory Council is expected to establish the “Strategic Bitcoin Reserve.”
The idea of a national Bitcoin reserve surfaced during the Bitcoin 2024 conference earlier this year, where both Trump and Robert F. Kennedy Jr. made keynote speeches, along with several lawmakers, including Senator Cynthia Lummis (R-WY), who introduced the “Bitcoin Act” legislation proposing the creation of such an institute at the event.
Bitcoin reserve idea gaining traction
The idea of creating Bitcoin reserves is gaining traction beyond institutions now, with lawmakers and politicians around the world warming to the concept.ย
Satoshi Act Fund founder Dennis Porter recently revealed he is in discussions with Texas state officials to introduceย legislation for a strategic Bitcoin fund.ย Additionally, on Nov. 14, Representative Mike Cabell introduced a bill to create a BTC reserve in Pennsylvania using the state’s $7 billion fund.
Porter said Texas and Pennsylvania are the first of many and claimed that up to 10 more US states will likely follow suit before the year ends in an attempt to front-run the Trump administration’s plans for a federal Bitcoin reserve.
The examples in the US are motivating politicians in other countries. A Brazilian lawmaker pushed for a Bitcoin reserve in the country through legislation introduced on Nov. 26, which would allocate up to nearly $19 billion in BTC.
Meanwhile, Poland’s libertarian presidential candidate, Sลawomir Mentzen, wants to allow the country to hold BTC as a strategic reserve.
Mentioned in this article
Author 
Gino Matos
Gino Matos is a law school graduate and a seasoned journalist with six years of experience in the crypto industry. His expertise primarily focuses on the Brazilian blockchain ecosystem and developments in decentralized finance (DeFi).
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
MicroStrategy
MicroStrategy (Nasdaq: MSTR) is a worldwide leader in enterprise analytics and mobility software.
Satoshi Action Fund
Satoshi Action Fund (SAF) is a 501(c)(4) non-profit educational organization dedicated to informing policymakers and regulators about Bitcoin mining’s benefits and how it can be used as a tool to support other public policy goals.
Dennis Porter is the co-founder and chairman of Satoshi Action Fund,ย a 501(c)(4) non-profit educational organization dedicated to informing policymakers and regulators about Bitcoin miningโs benefits and how it can be used as a tool to support other public policy goals.
Cynthia Lummis, known for her pro-crypto views, is a United States Senator from the great State of Wyoming.
Donald John Trump was born on June 14, 1946, in Queens, New York City.