Former U.S. Treasury Secretary Larry Summers has dismissed the idea of governments holding Bitcoin reserves as “crazy,” cautioning against the potential risks associated with the volatile cryptocurrency. Speaking at a recent forum, Summers emphasized that national reserves should be focused on stability and reliability, attributes he believes Bitcoin lacks due to its speculative nature and lack of intrinsic value.
Summers argued that Bitcoin’s extreme price fluctuations make it unsuitable for governments to rely on, particularly in times of financial uncertainty. While some advocates view Bitcoin as a hedge against inflation and a means to diversify reserves, Summers warned that its adoption at a national level could lead to significant fiscal risks, undermining trust in financial systems. This stance highlights a broader divide among policymakers and financial experts over the role of cryptocurrencies in global finance.
