Ex-Fed Chair Bill Dudley warns against including Bitcoin in US national reserves

From Investing.com
December 6, 2024 3:30:18 pm:

Former New York Federal Reserve chairman, Bill Dudley, voices concerns over the idea of including Bitcoin in the US national reserves. Proponents argue it could hedge against inflation and diversify financial assets, but Dudley believes it may not be beneficial overall. BTC trading down 4.31% at $98,854, after hitting an all-time high of $104,000.

Dudley argues that a Bitcoin reserve could worsen government finances and lead to inflation. He points out that Bitcoin is not widely accepted as money due to its volatility and slow transactions. However, he acknowledges the cryptocurrency’s portability, semi-anonymity, and ability to be transferred without traditional financial intermediaries.

While a Bitcoin reserve would likely drive up BTC prices as investors anticipate government purchases, Dudley warns it could also fuel inflation. Bitcoin’s unique characteristics could make it unsuitable for a national reserve, despite its positive attributes.

Read more at Investing.com: Ex-Fed Chair Believes Bitcoin Reserve Might Not Be Good Idea: Details By U.Today