Ex-finance minister calls plans "insane"

While more and more crypto-friendly U.S. politicians are advocating for a national Bitcoin reserve, criticism of the idea is also growing.

El Salvador already has one, and the United States is also discussing it: a national strategic Bitcoin reserve. But in the US, there is far from consensus on this plan. One of the prominent skeptics is former Treasury Secretary Lawrence Summers.

In a interview with Bloomberg he called the idea of a national Bitcoin reserve "insane." According to Summers, there is "no reason" to follow this course, except "satisfying a specific group of voters."

Criticism from the crypto community

Summers' statements were not well received within the Bitcoin and crypto sectors and led to sharp criticism. Yet he is not completely anti-crypto. In fact, when it comes to regulation, Summers seems to side with the industry: "I believe we should support financial innovation regardless of direction. It is also true that crypto has been over-regulated by a few overzealous regulators."

This comment is seen as an indirect attack on former SEC Chairman Gary Gensler, who was known for his tough stance on the crypto industry.

Discussion of reserves elsewhere as well

Not only in the US is there talk of a national Bitcoin reserve. In Brazil, a bill is currently in parliament to create its own reserve.