Former New York Fed President: Bitcoin reserves would be a bad deal for Americans

Foresight News reported that former New York Fed President Bill Dudley said that since Trump won the US presidential election, the price of Bitcoin has risen by more than 40%, partly because people hope he will support the establishment of a government reserve of this cryptocurrency. He supported this idea during the campaign, and lawmakers who support cryptocurrencies have also proposed ways to achieve this goal. It's hard to imagine what benefit this would have for most Americans. However, what benefit would establishing a Bitcoin reserve have for the government or those who do not hold Bitcoin? There is no benefit. There is no exit strategy, so its purpose is to drive up inflation, not to create value for the government - the government will be forced to hold a volatile token that will not generate any income. To provide the purchase funds, the Treasury must either borrow (thereby increasing the cost of debt service) or the Fed must create money (thereby exacerbating inflation). The latter is hardly different from the Fed monetizing the US government's debt (similarly, directing the Fed to use the government's gold reserves would do the same, according to a congressional legislative proposal).