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U.S. Crypto Task Force to Establish National Bitcoin Reserve
The U.S. crypto task force is set to focus on establishing a national bitcoin (BTC) reserve, a move that is likely to spur similar efforts worldwide, according to a research report by Bernstein.
Global Implications
A creation of a U.S. bitcoin reserve could lead to a global race amongst sovereigns to buy bitcoin as one of the reserve assets, analysts led by Gautam Chhugani wrote.
Structural Questions
The formation of a strategic reserve poses a number of structural questions, the report said.
- Will the U.S. Federal Reserve or the Treasury buy bitcoin? If the Fed, that would require legislative approval, the report noted.
- How would the Fed fund cryptocurrency purchases? Bernstein said it could issue debt or sell some of its gold reserves.
- The U.S. government could add the $20 billion in bitcoin it has seized from criminal enterprises to any national reserve, the report added.
Trump Administration’s Sovereign Wealth Fund
The Trump administration also announced the creation of a sovereign wealth fund (SWF), the report noted.
Such a fund “would consider key U.S. crypto companies/market leaders, as strategic assets to own,” Bernstein said. “Investors should position themselves for the next leg of the bull market across bitcoin and bitcoin-linked equities.”
Conclusion
The establishment of a national bitcoin reserve in the United States could have significant implications for the global cryptocurrency market. As the world’s largest economy, the U.S. has the potential to set the stage for other countries to follow suit.
FAQs
- What is the U.S. crypto task force? The U.S. crypto task force is a group of experts and officials tasked with studying the potential of cryptocurrencies like bitcoin and exploring ways to leverage their benefits.
- What is the purpose of establishing a national bitcoin reserve? The purpose of establishing a national bitcoin reserve is to diversify the U.S. economy and reduce reliance on traditional reserve currencies.
- How would the Federal Reserve fund cryptocurrency purchases? The Federal Reserve could issue debt or sell some of its gold reserves to fund cryptocurrency purchases.
- What is a sovereign wealth fund? A sovereign wealth fund is a state-owned investment fund that invests in a variety of assets, including stocks, bonds, and real estate.
- What is the potential impact of a global race to buy bitcoin? The potential impact of a global race to buy bitcoin could be significant, as it could lead to increased demand for the cryptocurrency and potentially drive up its value.
