U.S. Bitcoin Reserve Plans Could Trigger Global Crypto Competition
A recent Bernstein report has drawn attention to the growing possibility that the U.S. could create a national Bitcoin reserve, an idea that could inspire other nations to follow suit.
Analysts, led by Gautam Chhugani, argue that such a reserve would likely spark competition among countries eager to add Bitcoin to their own financial portfolios.
The report raises concerns about who would be responsible for buying Bitcoin—either the U.S. Treasury or Federal Reserve. If the latter were involved, lawmakers would need to approve the process, and the Fed could potentially fund the purchase through debt issuance or by selling gold reserves. Additionally, the U.S. might incorporate Bitcoin seized from criminals into this new reserve.
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Amid these discussions, the possibility of a sovereign wealth fund (SWF) dedicated to U.S. crypto firms has also emerged. This fund would view leading crypto companies as valuable assets to invest in. Bernstein believes this could trigger a new market phase for Bitcoin and related investments.
On the state level, multiple U.S. states have proposed legislation to include Bitcoin in their treasuries. Arizona, Texas, Illinois, and Utah are among those taking action, with analysts estimating that the passing of these bills could create a significant demand for Bitcoin. Despite this enthusiasm, some countries, like Japan, remain skeptical, citing the cryptocurrency’s volatility as a potential threat to economic stability.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
