Bernstein: U.S. Cryptocurrency Task Force Will Focus on Establishing National Bitcoin Reserve

BlockBeats News, February 17th, according to CoinDesk, Bernstein stated in a research report on Monday that the U.S. cryptocurrency working group will focus on establishing a national Bitcoin (BTC) reserve, a move that could spark similar efforts globally.

Analysts led by Gautam Chhugani wrote, "If the U.S. builds a Bitcoin reserve, it could lead to governments worldwide rushing to buy Bitcoin as one of their reserve assets."

The report stated that establishing a Bitcoin strategic reserve would bring a series of structural issues.

"Will the Federal Reserve or the Treasury purchase Bitcoin?" the report noted, pointing out that if it is the Federal Reserve, this would require legislative approval.

The report also stated, "How will the Federal Reserve Bank fund cryptocurrency purchases?" Bernstein said the Fed could potentially do so by issuing debt or selling part of its gold reserves.

The report added that the U.S. government could also include $20 billion worth of Bitcoin seized from criminal organizations in the national reserve.

The brokerage firm pointed out that the Trump administration also announced the creation of a Sovereign Wealth Fund (SWF).

Bernstein stated, "Such a fund would consider key U.S. cryptocurrency companies/market leaders as strategic assets to hold." "Investors should prepare for the next bull market, focusing on Bitcoin and Bitcoin-related stocks."