According to Odaily , US Senator Cynthia Lummis has proposed a plan to finance Bitcoin purchases by tapping into the United States’ vast gold reserves. These reserves date back to when the dollar was pegged to the precious metal, allowing holders to exchange dollars for gold at a fixed rate. Although the dollar has not been convertible into gold since the early 1970s, the US Treasury and Federal Reserve still hold about 8,100 metric tons of gold. The government currently values ​​this gold at $42 per ounce, well below the current market price of $2,650 per ounce. Lummis proposes that the Treasury revalue gold at current market prices and use the resulting paper profits to fund Bitcoin purchases without raising taxes or issuing new debt. Critics, however, argue that this approach is not cost-free. It would require the Fed to cover the difference between the Treasury’s gold certificates and the new valuation through a combination of printing money and selling assets. Monetary economist George Selgin has criticized the proposal, calling it a “backdoor loan” by the US government. This allegedly bypasses the normal appropriation process and obscures the truth to avoid new debt.“What better way to win public support than to convince people that this plan won’t cost them a cent?” Selgin commented.

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