Trump’s Bitcoin Reserve Proposal Sparks Strong Opposition

Donald Trump’s suggestion to establish a national Bitcoin reserve has generated strong reactions, particularly from former Treasury Secretary Larry Summers, who criticized the idea as unrealistic and driven by political motives.

Speaking on Bloomberg TV, Summers, who previously managed the U.S. gold reserves under Bill Clinton, dismissed the concept as “crazy,” emphasizing that unlike gold or oil, Bitcoin lacks tangible uses or strategic importance.

Summers also questioned the rationale behind the proposal, suggesting that it was more about appeasing donors within the cryptocurrency industry than serving any national interest. He described Bitcoin as an “unproductive inventory” with no clear purpose for a national reserve.

The proposal was first floated by Trump at a Bitcoin conference in July, where he outlined plans to counter global competitors like China by establishing a Bitcoin reserve.

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Crypto-supportive Senator Cynthia Lummis has since backed the idea, proposing a bill that would have the U.S. government acquire one million Bitcoins over five years, a move that would cost roughly $100 billion at current prices. Advocates for the reserve believe it could help reduce the national debt and offer a new way to bolster the dollar, though critics remain unconvinced about its practicality.