Summers stated that this proposal was not based on a logical economic justification and suggested that it was put forward to benefit special interest groups that donated to Trump’s campaign. However, Summers also stated that he agrees with Trump’s view that crypto is restricted by excessive regulations.

Speaking to Bloomberg TV on December 6, Summers emphasized that creating a strategic Bitcoin reserve cannot be compared to the oil and gold reserve policies of the past.

“I understand why we need a national oil reserve; “I also understand the reasons for hoarding gold at Fort Knox a century ago,” he said. “But there is no logical justification for creating such a reserve to support an asset like Bitcoin, whose use is limited and whose value is fluctuating.”

Summers stated that this was a plan designed solely to look cute to special interest groups supporting Trump’s campaign.

During his election campaign, Trump proposed keeping the approximately 198,000 BTC seized by the US government as a national reserve (worth more than $19 billion, according to Arkham Intelligence).

In addition, some Republicans close to Trump, especially Senator Cynthia Lummis, are working on a bill that would require the government to purchase 1 million BTC, equivalent to 5% of the total supply, and hold these assets for at least 20 years.

Lummis argues that this approach would help alleviate the United States’ national debt, which exceeds $36 trillion.

Summers acknowledged that some of Trump’s crypto-related rhetoric was noteworthy and emphasized the need to support financial innovation. “I think we need to support financial innovation,” he said.

“There are some cases where crypto is overly restricted by overzealous regulators.” Summers also acknowledged crypto’s potential for innovation, but noted that creating a national Bitcoin reserve is economically unnecessary.

Summers served as Treasury Secretary from 1999 to 2001 under the Clinton administration, and in 2016 he served as a consultant to Digital Currency Group (DCG), a leading company in the crypto industry.

In this context, Summers, who is no stranger to cryptocurrencies, argues that the economic effects of crypto should be carefully evaluated. However, he questions the feasibility and logic of the idea of ​​a strategic Bitcoin reserve.

Avik Roy, president of the think tank Foundation for Research on Equal Opportunity, is also skeptical of the idea. Speaking at a crypto summit last month, Roy said Lummis’ suggestion was “overestimating the contribution Bitcoin can make.”

“Bitcoin reserves may be a good start, but they are not the solution alone,” Roy said, adding that more fundamental reforms are needed to close budget deficits. “Realistic budget reforms are needed to reduce federal budget deficits from $2 trillion a year,” he added.

These discussions raise the question of what path the Trump administration will follow regarding crypto policies. While Summers emphasizes that creating a national Bitcoin reserve will not provide economic benefit, he also states that financial innovations should be supported.

On the other hand, hopes remain alive among Republicans that crypto reserves could solve the US’s financial problems. While Summers said that this idea was related to political interests rather than economic reasons, he agreed with Trump that the regulation of crypto should be reconsidered.