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

Odaily Planet Daily News Bernstein said in a research report 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 United States establishes a Bitcoin reserve, it could lead to a race for governments around the world to buy Bitcoin as one of their reserve assets," wrote a 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 Federal Reserve Bank (Fed) or the Treasury Department buy Bitcoin?" The report noted that if it is the Federal Reserve Bank, this will require legislative approval. The report also said, "How will the Federal Reserve Bank 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 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 market with a focus on Bitcoin and Bitcoin-related stocks." (Coindesk)