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Trump's BTC reserve plan would be a 'bad deal' -- Ex-NY Fed president
"Bill Dudley joined others in suggesting the only purpose of a US government Bitcoin reserve would be to reward Trump’s crypto supporters."
Another former financial official with the United States government has expressed concerns about President-elect Donald Trump’s intention to establish a national Bitcoin
reserve while in office.
In a Dec. 6 Bloomberg op-ed, economist and former New York Federal Reserve Bank President Bill Dudley said despite Bitcoin’s recent rise to more than $100,000, it was “hard to fathom” how the US government holding cryptocurrency would benefit residents.
Dudley said Bitcoin “hardly qualifies as money,” citing examples of people losing access to their crypto wallets and “slow and expensive” transactions.
However, the former Fed president suggested that one of the reasons Bitcoiners may support policies to establish a US reserve would be to “send the price soaring” rather than bestow benefits on non-hodlers.
“There’s no exit strategy, so the purpose must be to push prices higher, not create value for the government — which would be stuck holding volatile tokens that produce no income,” said Dudley, adding:
“To fund the purchases, either the Treasury would have to borrow (driving up debt service costs) or the Federal Reserve would have to create money (fueling inflation).”
reserve while in office.
In a Dec. 6 Bloomberg op-ed, economist and former New York Federal Reserve Bank President Bill Dudley said despite Bitcoin’s recent rise to more than $100,000, it was “hard to fathom” how the US government holding cryptocurrency would benefit residents.
Dudley said Bitcoin “hardly qualifies as money,” citing examples of people losing access to their crypto wallets and “slow and expensive” transactions.
However, the former Fed president suggested that one of the reasons Bitcoiners may support policies to establish a US reserve would be to “send the price soaring” rather than bestow benefits on non-hodlers.
“There’s no exit strategy, so the purpose must be to push prices higher, not create value for the government — which would be stuck holding volatile tokens that produce no income,” said Dudley, adding:
“To fund the purchases, either the Treasury would have to borrow (driving up debt service costs) or the Federal Reserve would have to create money (fueling inflation).”
https://cointelegraph.com/news/federal-reserve-president-donald-trump-bitcoin-reserve-plan-bad-deal
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