Key Notes

Key Notes:

Bitcoin reserve plans may start from confiscated BTC stash by the US Government.The analysts from Bernstein believe the Federal Reserve might be in charge of the purchases.Governments around the world are exploring Bitcoin reserve.

The crypto task force launched by the US Securities and Exchange Commission (SEC) and led by Hester Peirce will play a major role in creating a national Bitcoin (BTC) reserve. This plan could lead to a global trend of more nations adopting Bitcoin BTC $96 656 24h volatility: 1.3% Market cap: $1.92 T Vol. 24h: $17.95 B as part of their treasury reserve.

The US crypto task force’s initiative has raised important questions about how Bitcoin will be handled and which government bodies will manage it.

Analysts at Bernstein recently released a report addressing this plan. They noted that setting up the Bitcoin reserve will not be simple. A major question was raised regarding which US government agency will be responsible for purchasing and managing the Bitcoin treasury.

Bernstein experts suggest that the Federal Reserve or the US Treasury could take this role. They highlighted that if the Federal Reserve gets involved, it would need approval from lawmakers, making the process more complicated.

Another challenge is how the US would fund the purchase of Bitcoin. One option could be for the Federal Reserve to issue debt or sell some US gold reserves.

Bernstein analysts reported that this would help the US raise the funds needed to buy Bitcoin. The analysts also pointed out that the US government has seized about $20 billion worth of Bitcoin from criminal investigations.

They said the confiscated crypto assets could be added to the national reserve without purchasing more. It would give the U.S. a head start in building its Bitcoin reserves.

The US government has proposed creating a Sovereign Wealth Fund (SWF) and creating Bitcoin reserves in the country.

This fund could support the US crypto market by investing in key companies and helping grow Bitcoin’s role in the global economy.

The US Bitcoin reserve race has gained massive traction, with 21 states now having active bills aiming to allocate part of their public funds to BTC.

US states such as Arizona, Texas, Illinois, and Utah have already taken legislative steps to incorporate Bitcoin into their treasury plans. As reported by Coinspeaker, VanEck revealed that if the current bills are approved, it could lead to at least $23 billion in BTC demand.

Meanwhile, North Carolina has joined the growing number of states exploring Bitcoin Treasury. Coinspeaker noted that the state recently unveiled a historic 10% Bitcoin reserve plan.

While many see Bitcoin as a promising asset, not everyone supports it as part of a national reserve. Some countries, including Japan, are concerned about Bitcoin’s volatility and the potential risks it could bring to national economies.

Others argue that the US could make a mistake by holding such an unstable asset in its reserves.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.

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