Former New York Fed President: 'Bitcoin as a Strategic Reserve Asset Doesn't Help the Government'

There is a claim that the United States approving Bitcoin as a strategic reserve asset is a decision biased towards certain interest groups.

According to Bloomberg on the 5th (local time), Bill Dudley, former President of the New York Federal Reserve, stated, "I don't see how making Bitcoin a strategic reserve asset for the U.S. benefits Americans," adding, "This idea is about raising the price for Bitcoin investors, not creating value for the government."

He acknowledged that Bitcoin has advantages such as portability, anonymity, and diversification of investment portfolios, but also stated, "Bitcoin is not suitable as a medium of exchange, making it difficult to see as money." He continued, "Bitcoin is highly volatile and incurs high transaction costs, so there is no obligation for most countries to accept it as a means of payment," and explained, "Unlike traditional financial assets, Bitcoin is not linked to cash flows like interest or dividends."

Dudley further added, "If the Trump administration truly wants to support the virtual asset industry, it should first create an environment where it can be developed safely," emphasizing the need to establish clear laws and regulations and find ways to control virtual assets used in criminal activities.