Bernstein said the United States could sell its gold to build potential Bitcoin reserves: Will buying BTC ignite a “global race”?

Cryptocurrency Working Group is formed under the leadership of the President Donald Trump Turning your attention to the creation of a country Bitcoin BTC/USD Reserves, according to a Monday research report by the brokerage firm Bernstein.

what happened: Coindesk reported that building such inventory could ignite “global race” in the country to use Bitcoin as a reserve asset.

The analysis considers the question of who will make potential purchases between the Federal Reserve and the Treasury. If it falls under the authority of the Federal Reserve, legislative approval is required.

Bernstein considered options for the Fed to fund these purchases, including increasing debt or selling gold reserves.

The report also recommends that the U.S. government can supplement state reserves with bitcoins it seized from criminal activities.

See: Planb transfers Bitcoin holdings to ETFs, saying he is no longer “extra-long” – Peter Schiff reacts: Apex Crypto “does not achieve its supposed purpose”

Why it matters: All these findings are consistent with legislation proposed by the Senators. Cynthia Lummis (R-Wy.) Proposes to purchase 1 million bitcoins within five years. The bill promotes gold medals held at 12 Fed banks to fund future acquisitions.

Interestingly, after taking office, Trump signed an executive order to evaluate the creation of “strategic national digital asset inventory” rather than just Bitcoin inventory.

The Fed has previously said it does not allow the purchase of Bitcoin and is not looking for changes to the law.

Some analysts who spoke to Bonzan and earlier were skeptical of the U.S. selling gold to fund Bitcoin purchases, noting that the U.S. public won’t “tolerate” this.

Price action: At the time of writing, Bitcoin was exchanged for $95,859.03, down 0.26% in the past 24 hours, according to Benzinga Pro.

Image via shutterstock

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