Bernstein: The U.S. cryptocurrency task force will focus on establishing a national Bitcoin reserve

Odaily Planet Daily reports that Bernstein stated in a research report on Monday that the US cryptocurrency working group will focus on establishing a national Bitcoin (BTC) reserve, which could stimulate similar efforts globally. The analyst team led by Gautam Chhugani wrote: "If the United States establishes a Bitcoin reserve, it may lead to governments around the world competing to buy Bitcoin as one of their reserve assets." The report said that establishing a strategic Bitcoin reserve would bring about a series of structural problems. "Will the Federal Reserve (Fed) or Treasury Department purchase Bitcoins?" The report pointed out that if it is the Federal Reserve Bank, this will require legislative approval. The report also asked, "How will the Federal Reserve Bank provide funds for purchasing cryptocurrencies?" Bernstein suggested that Fed might do so by issuing debt or selling some gold reserves.

The report added that the U.S. government could also add $20 billion worth of Bitcoins confiscated from criminal organizations to its national reserves. This brokerage noted that Trump's administration has announced creation of Sovereign Wealth Fund (SWF). Bernstein stated: “Such fund would consider key American cryptocurrency companies/market leaders as strategic assets.” “Investors should prepare for next bull market with focus on bitcoin and stocks related to bitcoin.”