it's because the idea of having assets just sitting somewhere doing nothing (the reserve) is against good financial practices
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Can you even imagine the insanity of keeping 4200 BTC in a single address in what basically amounts to a hot wallet? In what scenario would the federation ever have to release more than maybe 10-20 BTC at a time on a peg-out? Shouldn’t they have used multiple segregated wallets? Shouldn’t that amount have had to go through a manual review process at some stage?