Bernstein: The U.S. cryptocurrency task force will focus on establishing a national Bitcoin reserve

ChainCatcher news, according to CoinDesk, investment bank Bernstein has released a research report indicating that the U.S. cryptocurrency working group will focus on advancing the establishment of a national Bitcoin reserve. Analyst Gautam Chhugani's team believes that this initiative could trigger a global competition among sovereign nations to incorporate Bitcoin into their reserve assets.

The report explores the key issues facing the establishment of the reserve: first is the determination of the purchasing entity, which would require legislative approval if executed by the Federal Reserve; second is the source of funding, which could potentially be addressed through issuing bonds or selling a portion of gold reserves. The report also mentions that the U.S. government could include approximately $20 billion worth of Bitcoin previously seized from criminal activities into the national reserve.

It is noteworthy that the Trump administration had previously announced the establishment of a sovereign wealth fund (SWF), which would consider significant U.S. cryptocurrency companies as strategic investment targets. Bernstein advises investors to prepare for a new round of bull market for Bitcoin and related stocks.