What must policymakers consider before building a Bitcoin reserve?
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The U.S. plan to build a Strategic Bitcoin Reserve using seized assets sounds incredibly appealing because it's budget-neutral. But tell me, how will policymakers realistically address major concerns around market volatility, stricter regulatory oversight, and long-term taxpayer exposure while still boldly positioning the country as a definitive global Bitcoin leader?
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Strategic Bitcoin Reserve might be budget-neutral, but I think the critical challenge is that policymakers still urgently need a crystal-clear framework for managing three major risks: volatility, custody security, and regulatory expectations.
The only realistic path forward is to pair strict oversight with completely transparent rules for reserve management. Otherwise, taxpayers remain indirectly and unnecessarily exposed. If this is all done very carefully, though, it could genuinely strengthen U.S. financial leadership without undermining stability or public trust.
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I'm following the news about a 'budget-neutral' Bitcoin Reserve, but I'm skeptical. How can the government really guarantee this won't backfire? What’s keeping this from turning into a hidden liability for taxpayers, given the huge price fluctuations and hacking risks?
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@Cassian-Drew That's a fair point. A Bitcoin reserve sounds good on paper, but the execution is the scary part. Given the market's fluctuations and lack of regulation, it's hard to believe the government can effectively protect taxpayers from risk. I think we need much stronger custody laws and clear liability limits before it becomes a safe bet.