hh on Nostr: One thing about the "reserve" kerfuffle. What they've announced so far, is no ...
One thing about the "reserve" kerfuffle. What they've announced so far, is no "reserve". It's a "stockpile".
A reserve in the sense we are all discussing, and Trump willingly (and probably misleadingly) implied all along, is 1. held by the monetary authority, 2. specifically used to back up currency value by balancing external payments
A stockpile is a quantity of whatever stuff kept in stock, to be deployed in case of a shortage or "market disruption". That is, a market price manipulation mechanism.
I think that fits very precisely the whole "American crypto" discourse, and does not preclude the addition of BTC to the actual reserve. It's just probably that he can't do it by executive order.
I've posted many times about the "Prudential treatment of cryptoasset exposures" by the Bank for International Settlements". That will be the mechanism, but it's up to the Fed, by definition.
https://www.bis.org/bcbs/publ/d545.htm
A reserve in the sense we are all discussing, and Trump willingly (and probably misleadingly) implied all along, is 1. held by the monetary authority, 2. specifically used to back up currency value by balancing external payments
A stockpile is a quantity of whatever stuff kept in stock, to be deployed in case of a shortage or "market disruption". That is, a market price manipulation mechanism.
I think that fits very precisely the whole "American crypto" discourse, and does not preclude the addition of BTC to the actual reserve. It's just probably that he can't do it by executive order.
I've posted many times about the "Prudential treatment of cryptoasset exposures" by the Bank for International Settlements". That will be the mechanism, but it's up to the Fed, by definition.
https://www.bis.org/bcbs/publ/d545.htm