Cato Institute expert: Senator Lummis's Bitcoin reserve plan has problems

Senator Lummis announced on Saturday that she will introduce a bill to have the US Treasury buy 1 million Bitcoins within 5 years.George Selgin, the Honorary Director of the Center for Monetary and Financial Alternatives at the Cato Institute, stated that the actual plan is quite different from what Lummis proposed on the Bitcoin 2024 stage and is far less ambitious.Although the details of Lummis' plan have not been made public, according to conversations between George Selgin and Lummis's office, the legislation only "indirectly" involves the Fed and has nothing to do with "bank reserves". In fact, the plan is more moderate, and the Fed will not purchase any Bitcoins (although it will participate in the process). Only the Treasury will buy them.George Selgin's biggest doubt is why the Treasury should hold any gold or Bitcoin in the first place. He suggests that the Treasury sell its current gold holdings to directly repay debt or fund other efforts, rather than holding a large amount of funds.