DePaul Professor on Trump’s Crypto Reserve Idea: Is It Feasible?
In a recent interview on the “Click Here” podcast, Recorded Future News host Dina Temple-Raston spoke with DePaul University professor Lamont Black about the potential implications of former President Donald Trump’s interest in cryptocurrency. The discussion centered around Trump’s musings about incorporating cryptocurrency into the nation’s reserve fund and the potential impact of such a move.
Professor Lamont Black
Black, who teaches a course on blockchain and cryptocurrency at DePaul, offers insights into how Trump’s ideas might work in practice. Black, a former economist at the Federal Reserve Bank in Washington, D.C., provides expert context for what could be a historic shift in economic policy.
“The idea of a government reserve is a very old idea,” Black explained, “A government holding gold reserves goes back to even the early civilizations.” He suggests that Trump’s proposal could involve holding Bitcoin as a component of federal asset reserves. Black highlighted that the conversation around Bitcoin is shifting, and that the cryptocurrency is increasingly seen as a potential global reserve currency.
Raston notes that Trump’s stance seemingly reversed in recent years, as previously, he was a public skeptic regarding crypto, but now he’s considering placing a cryptocurrency advisor in the White House.
The professor shared his view on the notion of a strategic Bitcoin reserve. He expressed his view that it is a good idea but cautioned that “the devil’s in the details.” Black believes that Bitcoin could evolve into a similar role as gold reserves in the past. Black also said, “I do think this is the future. And so, it’s a forward-thinking move for the government to consider this.”
The pair touched on the state of Pennsylvania’s introduction of a bill that allows the state to put as much as 10% of its funds into Bitcoin.
Black pointed out the trend of developing countries using cryptocurrency to shore up their reserves. “El Salvador has had a strategic Bitcoin reserve since 2021,” he said. He pointed out that although El Salvador was ridiculed in the past, they could be having the last laugh now that the “bitcoin bull cycle” is returning.
When asked about the potential for politics and cryptocurrency mixing, Black worried that it could cause crypto to lose its “soul.” “Crypto doesn’t have value. The dollar does not have intrinsic value. It is the only value that we associate with it as a community of people. And so my hope is that that community continues to thrive, which will then mean the thriving of this digital ecosystem.” Black emphasized that cryptocurrency thrives on its community and its ability to operate outside of government control.
This conversation reflects a significant shift in perspective, as the world looks toward both traditional and new approaches in financial systems. Black’s expertise provides an important bridge for people attempting to grasp the intricacies of today’s financial world.
