Trump Likes the Idea of a Federal Bitcoin Reserve. Don’t Laugh.
The idea of a government fund invested in cryptocurrency may sound foolish, but there are reasons for the US Treasury to consider adding Bitcoin to its portfolio.
Does the US need a strategic reserve?
Photographer: Jon Cherry/Getty Images North AmericaWhich financial assets a central bank should buy and sell is hardly a novel question. Historically, the US Federal Reserve has focused on shorter-term Treasury securities, but quantitative easing had the Fed buying mortgage securities and quality commercial paper in significant quantities. More generally, central banks often hold gold and foreign currencies.
Separately, the US government maintains reserves of some critical commodities, such as its Strategic Petroleum Reserve. The Treasury also holds foreign currency reserves and SDRs, and many foreign governments go further and have extensive sovereign wealth funds that include equities, natural resources (Canada has its own strategic reserve, for maple syrup) and other assets.