US TO SELL #gold AND BUY $BTC BITCOIN?
As of December 2024, the United States government has not initiated the sale of its gold reserves to purchase Bitcoin. However, there are ongoing discussions and proposals regarding the establishment of a strategic Bitcoin reserve.
President-elect Donald Trump has expressed interest in creating a U.S. Bitcoin strategic reserve. In a July speech, he suggested that this reserve could begin with Bitcoin seized from criminal activities, which currently amounts to approximately 200,000 tokens valued at about $21 billion. The implementation of such a reserve could involve executive actions or require legislative approval.
Senator Cynthia Lummis, a Republican from Wyoming, has introduced a bill proposing the creation of a Bitcoin reserve. Her plan involves the U.S. Treasury purchasing 200,000 Bitcoins annually over five years, totaling one million Bitcoins, which would represent about 5% of the total global supply. To fund these purchases, the proposal suggests utilizing profits from Federal Reserve banks' deposits and gold holdings.
Critics of these proposals highlight several concerns, including Bitcoin's volatility, lack of intrinsic use, and vulnerability to cyberattacks. Additionally, Federal Reserve Chair Jerome Powell has stated that the U.S. central bank does not hold Bitcoin and is not seeking to change that stance, indicating that any move to create a Bitcoin reserve would require Congressional action.
In summary, while there is significant discussion and some legislative movement toward the U.S. government establishing a strategic Bitcoin reserve, no concrete actions have been taken to sell gold reserves for the purpose of purchasing Bitcoin at this time.
