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American lawmakers suggest creation of Bitcoin reserve fund to boost US economy

Bitcoin reserve fund

Showing the rising clout of cryptocurrency in normal financial services, a bipartisan group of U.S. lawmakers initiated a plan to establish a national Bitcoin reserve. The aim is to find ways that enable the US locate states in global financial system and with this build up US economy.

A plan, introduced by Members from both houses of Congress and both parties, proposes the federal government would own collect, and manage Bitcoin as part of its reserves. Benefits, according to advocates, include a hedge against inflation and currency devaluation for the US as well as leadership in the rapidly developing digital asset market.

In a statement given by one of the bill sponsors, “Bitcoin and other digital currencies have tremendous potential, yet remain underregulated… The United States must be a leader in defining an orderly process for making markets in these new mediums — one step at a time.

According to the bill proposal, the national Bitcoin reserves could act as stabilizers for an economy in case of a financial crash, as well make it possible for foreign investors to invest capital through their local currencies and further develop technology in cryptocurrency.

This process has not been met without objection, however. There has been concern among some economists and financial analysts over the volatility of Bitcoin, as for solutions to start using the currency. They caution that such volatility can create significant risks for public funds if left unchecked. Skeptics also suggest it is impossible to fit a decentralized currency within the confines of an established financial system.

Even so, the call for a Bitcoin reserve represents a changing sentiment in both lawmakers and financial institutions towards digital currencies. With Bitcoin and other cryptocurrencies taking the world by storm, there are a number of discussions regarding regulatory frameworks and economic advantages that could be reaped.
The move has piqued the interest of industry stakeholders, seeing it as a significant departure for the United States to a more crypto-friendly approach. The result of this proposal could have vast ramifications for the future of Bitcoin and its place in global finance as more governments internationally entertain similar plans.

The two will be conducting hearings to drill down on the topic more in the coming weeks — including input from financial experts, industry specialists and comments from the public.

With the rapidly changing narrative around cryptocurrency, this initiative may be significant as a benchmark for nations in dealing with digital currencies in attempts to come.

Morris Gitonga

If you need whitepapers, pitch decks, press release, marketing plans or blog articles contact me on Morris@coinweez.com, Get in touch for OTC trading/cross-border payment deals too!

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