Foresight News reported, according to Jinshi, that former New York Federal Reserve Chairman Bill Dudley stated that since Trump won the U.S. presidential election, the price of Bitcoin has risen by more than 40%, partly because people hope he will support the establishment of a government reserve for this cryptocurrency. He supported this idea during the campaign, and legislators who support cryptocurrency have also proposed ways to achieve this goal. It is hard to imagine what benefits this would bring to most Americans. However, what benefits would a Bitcoin reserve have for the government or for those who do not hold Bitcoin? None at all. There is no exit strategy, so its purpose is to drive up inflation rather than create value for the government—the government would be forced to hold volatile tokens that generate no income. To provide the funds for purchases, the Treasury would either have to borrow (thus increasing debt service costs), or the Federal Reserve would have to create money (thus exacerbating inflation). The latter is hardly different from the Federal Reserve monetizing U.S. government debt (similarly, a proposal for Congress to direct the Federal Reserve to use the government's gold reserves would be the same).

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