Bernstein: US Cryptocurrency Task Force Will Focus on Building National Bitcoin Reserve

Odaily News Bernstein said in a research note on Monday that the U.S. cryptocurrency task force will focus on establishing a national Bitcoin (BTC) reserve, a move that could inspire similar efforts around the world. "If the U.S. establishes a Bitcoin reserve, it could lead to a race among governments around the world to buy Bitcoin as one of their reserve assets," wrote the team of analysts led by Gautam Chhugani. The report said that establishing a strategic Bitcoin reserve would bring a series of structural problems. "Will the U.S. Federal Reserve (Fed) or the Treasury buy Bitcoin?" The report noted that if it is the Federal Reserve, this would require legislative approval. The report also said, "How will the Federal Reserve fund cryptocurrency purchases?" Bernstein said the Fed may do so by issuing debt or selling part of its gold reserves. The U.S. government could also add $20 billion in Bitcoin confiscated from criminal organizations to the national reserve, the report added. The brokerage noted that the Trump administration has also announced the creation of a sovereign wealth fund (SWF). "Such a fund would hold key U.S. cryptocurrency companies/market leaders as strategic assets," Bernstein said. "Investors should prepare for the next bull run with a focus on Bitcoin and Bitcoin-related stocks." (Coindesk)