In a bold move, U.S. Senator Cynthia Lummis has suggested that the U.S. government should consider converting a portion of its gold reserves into Bitcoin. This proposal aims to create a strategic Bitcoin reserve, which could potentially bolster the U.S. economy and enhance the dollar’s global standing.
Senator Lummis, a long-time advocate for Bitcoin, believes that the digital asset offers significant benefits as a store of value and a hedge against inflation. Her plan involves selling some of the Federal Reserve’s gold holdings, which are currently valued at outdated prices, and using the proceeds to purchase Bitcoin at current market rates. This approach would allow the government to establish a Bitcoin reserve without impacting the national balance sheet or requiring new taxpayer dollars.
Lummis’ proposal is part of her reintroduced BITCOIN Act, which seeks to acquire up to 1 million Bitcoin over time. The bill also explores other budget-neutral methods for acquiring Bitcoin, such as utilizing gains from revalued gold certificates and leveraging existing funds within the Federal Reserve system.
Bo Hines, Trump’s top crypto advisor, has expressed openness to exploring such innovative strategies, emphasizing the importance of maintaining a budget-neutral approach to avoid burdening taxpayers. The idea of diversifying national assets by incorporating Bitcoin into U.S. reserves reflects a growing interest in digital assets among policymakers and could mark a significant shift in how the U.S. manages its financial reserves.
