President-elect Donald Trump’s proposal to create a national Bitcoin reserve has drawn sharp criticism, with former Treasury Secretary Larry Summers calling the idea “crazy” and politically motivated. “There’s no reason to do that other than to pander to generous special-interest campaign contributors,” Summers said, likening Bitcoin to a “sterile inventory” unfit for a strategic reserve.
Trump’s plan includes acquiring 1 million Bitcoins—roughly 5% of the global supply—over five years, valued at about $100 billion. Supporters, including Sen. Cynthia Lummis (R-Wyo.), argue the reserve could diversify government holdings and counter geopolitical rivals like China. At a recent rally, Trump urged attendees to “never sell your Bitcoin,” fueling investor optimism and driving Bitcoin prices above $100,000. Still, critics, such as economist Peter Schiff, warn the move could destabilize the dollar and increase economic risk.
Trump has also announced plans for a crypto advisory council, with key industry players vying for seats. As the debate intensifies, Summers’ criticism highlights the polarizing nature of Trump’s Bitcoin reserve proposal and its potential implications for the U.S. economy.
Source: Fortune - Former Treasury Secretary Larry Summers Calls Trump’s Bitcoin Reserve Proposal “Crazy”
