Senator Proposes the United States Sell Gold to Buy Bitcoin Reserves

Senator Cynthia Lummis has proposed that the U.S. government should sell a portion of its gold reserves to buy Bitcoin in order to establish a strategic Bitcoin reserve. This proposal is outlined in the BITCOIN Act of 2024, with the expected goal of purchasing 1 million Bitcoin, equivalent to about 5% of the current total Bitcoin supply, at an estimated cost of approximately $90 billion. Lummis believes that using gold certificates from the national reserve to carry out this transaction would alleviate financial pressure and maximize national assets.

Currently, the U.S. Department of the Treasury holds gold certificates valued at about $11 billion, but at market prices, this value could rise to $675 billion. Lummis argues that this conversion would not only provide short-term benefits but also help reduce public debt in the long term, with plans to hold this Bitcoin for at least 20 years. Support from former President Donald Trump for this plan has also been emphasized, although the current political situation may impact the bill's chances of passage.