Will America buy Bitcoin using it's gold reserve?

[Nihum342]

Will America buy Bitcoin using it's gold reserve?

Yesterday, I was crawling down at Twitter. Then the news came in front of me. In fact, I want to verify whether this news is a rumor or the truth. Later I saw some news media and websites on the news.

Recently a senior officer of White House official indicated that the United States could use the gold reserve to buy Bitcoin. In fact, the news is spread on the basis of this statement.

Executive director of the American President's Digital Resource Advisory Council Bo-Hines, said in an interview that the United States could buy Bitcoin by it’s reserved gold. According to him, it is a step to increase America's Bitcoin Reserve.

Hines mentions the Bitcoin Act of 2021, which is proposed by Senator Cynthia Lumis (Republican-YO), which supports the United States within five years, which supports about 5% of the total Bitcoin supply to the United States, which supports the acquisition.

If this news is actually true then the United States can be a top player worldwide in the Crypto market.

Do you think the news is true? If America is able to do this, what will be the impact of the crypto market?

Source

[Tungbulu]

For now, I believe this should still be considered as a rumor because there are so far no official reports or announcements that the United States may in fact use part of their gold reserves to acquire Bitcoin, and until there’s an official statement or reports on this, it’s nothing but a rumor.

And concerning the potential impacts if it actually happens. This proposed plan means that the US would actually sell some id their Gold federal reserves to fund their  Bitcoin accumulation. Senator Cynthia has already introduced the  Bitcoin Act of 2025, which advocates that the US would/might acquire over 1 million BTC within 5 years. If the rumors are actually true, then this would undoubtedly facilitate their accumulation plans and that means that they’ll be reaching their goal even faster than expected, which would automatically make the US the global leader in cryptocurrency m, because they’d be holding over 5% of the world’s limited supply of Bitcoin.

[franky1]

the lummis bitcoin bill of 2021 was rejected couple years ago, but resubmitted recently. however there is nothing to stop trump and his crypto czar from writing their own draft bill in the incoming days, thats different to lummis's bill..

its also worth factoring in that even if the lummis bill is accepted, that US already has 200k this year (well 100k after you take away coin that goes back to victims(bitfinex)) so then counting in swaps of altcoins to bitcoin (using different market pairs than the usd-btc) means we may not see a btc-usd market buy of 200k this year even if things did follow the lummis bill, i do see the US ending up having 200k btc this year, but without 200k market buy up effect

[Iranus]

We need to know that gold reserves are held by the Fed and stored at their 12 branches across the United States. The Fed is an independent organization from the US government, they do not obey or have to listen to orders from the White House and vice versa. That means if the Trump administration wants to sell gold and buy bitcoin, they need congressional approval.

Selling gold to buy bitcoin is just one of the ideas the Trump administration has proposed, but many are skeptical of the idea and say it is unlikely to happen because it would require congressional approval. Because as we know, Congress is half Republican and half Democratic. Do you think Democrats will support the Trump administration's idea? When we see that most of them do not support bitcoin under the Biden administration?

Furthermore, this idea has not even been drafted and proposed, let alone whether it will be adopted or not. It is too early to think about this.

[Hispo]

I would take it as a rumor, personally.
The gold reserves of the United States has been a particularly controversial topic through the years for obvious reasons. And talking about using a significant amount of them to buy an asset like Bitcoin will definitely find opposition from the democrat party (which harbors much anti-decentralization sentiments).

It would be more realistic if Trump managed to pass a law which used seized Bitcoin from illegal activities to start to stockpile their own Bitcoin reserve for the ground up.
Even that law would find some level of opposition from the democrat party.

[Zanab247]

Let us just assume is a rumor, but if America president take such a wise decision to invest gold reserve in BTC reserve, it will make the government to continue investing in BTC because it will allow them to grow the economic for the new administration to have a good name in the country. We all know how BTC move when the bull run is onboard, because it alway increase BTC in people wallets for those that want to sell to earn profit from BTC, but for those that don't want to sell than to continue hodling to have hope that they will earn double profit in the future.

But if the government know that the gold reserve is not bring what they expect from gold reserve, I will advise the government of America to try BTC reserve and see the different benefits.

[Die_empty]

Hines mentions the Bitcoin Act of 2021, which is proposed by Senator Cynthia Lumis (Republican-YO), which supports the United States within five years, which supports about 5% of the total Bitcoin supply to the United States, which supports the acquisition.

Another striking information from the interview was the decision of the government to give Bitcoin a special status in the reserve policy. He stated that there will be a strategic reserve specifically for Bitcoin and a digital asset stockpile for other coins.

I would take it as a rumor, personally.
The gold reserves of the United States has been a particularly controversial topic through the years for obvious reasons. And talking about using a significant amount of them to buy an asset like Bitcoin will definitely find opposition from the democrat party (which harbors much anti-decentralization sentiments).

It is not a rumor, Bo Hines, the executive director of the President’s Council of Advisers on Digital Assets, is proposing a means to buy Bitcoin by adopting a budget-neutral strategy. He proposes to use the gains that the US has realised from gold investment to acquire Bitcoin.

https://cointelegraph.com/news/govt-realize-gains-gold-certificates-buy-bitcoin-bo-hines

[franky1]

I would take it as a rumor, personally.
The gold reserves of the United States has been a particularly controversial topic through the years for obvious reasons. And talking about using a significant amount of them to buy an asset like Bitcoin will definitely find opposition from the democrat party (which harbors much anti-decentralization sentiments).

It is not a rumor, Bo Hines, the executive director of the President’s Council of Advisers on Digital Assets, is proposing a means to buy Bitcoin by adopting a budget-neutral strategy. He proposes to use the gains that the US has realised from gold investment to acquire Bitcoin.

https://cointelegraph.com/news/govt-realize-gains-gold-certificates-buy-bitcoin-bo-hines

other means to buy bitcoin rumoured to be proposed are:
selling the altcoins
selling fed real estate of empty HQ/office buildings after cutting the deadwood/draining the swamp
using funds from non tax related activity, like funds given from visa's, passports, drivers permits, other regulatory required licencing/permit fee's
oil/gas/mineral sales

[Accardo]

Gold is scarce and hold strong value, the US government may not wish to touch the reserve. On the other hand, bitcoin will pay far better than Gold when the scarcity spreads. Senator LUMMIS, today, said; 20 years holding can reduce National debt, their ambition could be to hold large amounts of Bitcoin and take the biggest slice of the cake. How would the market react when the government leaves to pay off debts with profits gotten from Bitcoin? Atmost prices will sink, and multiple coins won't survive.

[DeathAngel]

It’s a theory & being pushed by Lummis, amongst others. I don’t think they will though, not yet any way. I would love this to happen as it would pump my bags but I feel it’s something that will be proposed. I am not confident it will be actioned, I do hope I am wrong though. It would be net neutral to the US taxpayer, as officials have said.

[fuguebtc]

I would take it as a rumor, personally.
The gold reserves of the United States has been a particularly controversial topic through the years for obvious reasons. And talking about using a significant amount of them to buy an asset like Bitcoin will definitely find opposition from the democrat party (which harbors much anti-decentralization sentiments).

It would be more realistic if Trump managed to pass a law which used seized Bitcoin from illegal activities to start to stockpile their own Bitcoin reserve for the ground up.
Even that law would find some level of opposition from the democrat party.

Isn't gold decentralized? They oppose bitcoin because it is too unstable, easily manipulated, uncertain...not because of its decentralized and uncontrollable.

Overall: there is a lot of noise around the US selling gold to buy bitcoin. But you're right, it's all just rumors so far. Senator Lummis initiated the idea, but she herself never stood up and called for and formed a group of supporters to study, discuss and come up with a solution. As long as it hasn't happened, it's all considered unreliable rumors.

[OgNasty]

I'm a bit surprised that this movement seems to be gaining traction.  Why sell the US gold?  We can literally print more to buy Bitcoin if we want.  We could use the revenue from Trump's Gold Card.  We could use the savings from Elon's DOGE efforts.  We could issue special debt instruments.  We could start accepting BTC for tax payments.  There are so many better ways to stack Bitcoin without raiding our gold savings.  I think the right thing to do would be to buy gold and Bitcoin with our USD and continue shrinking the size of government.