Experts from the Cato Institute: Senator Lummis's Bitcoin reserve plan has issues

ChainCatcher news, Senator Lummis announced on Saturday that she will propose a bill for the U.S. Treasury to purchase 1 million bitcoins within 5 years.

George Selgin, the honorary director of the Cato Institute's Center for Monetary and Financial Alternatives, stated that the actual plan is completely different from what Lummis presented on the Bitcoin 2024 stage, and the plan is far less ambitious.

Although the details of Lummis's plan have not been disclosed, according to George Selgin's conversation with Lummis's office, the legislation only "indirectly" involves the Federal Reserve and has nothing to do with "bank reserves." In fact, the plan is more moderate, as the Federal Reserve will not acquire any bitcoins (although it will participate in the process). Only the Treasury will acquire them.

George Selgin's biggest skepticism is why the Treasury should hold any gold or bitcoins in the first place. He suggested that the Treasury sell its gold on hand to directly pay off debt or fund other efforts, rather than holding large amounts of assets.