Fed Considers Bold Move: Diverting Gold Profits to Build a U.S. Bitcoin Treasury Reserve

The Federal Reserve is flirting with financial alchemy—melding old-school gold reserves with crypto's disruptive potential.

Subheader: From Fort Knox to Satoshi's Vault

A leaked policy note reveals the Fed is exploring whether to repurpose gold reserve profits to seed a national Bitcoin stockpile. No concrete figures yet, but the mere suggestion sends shockwaves through both bullion bars and blockchain circles.

Subheader: Hedging Against the Digital Tsunami

This isn't just diversification—it's a hedge against the Fed's own monetary policies. When your printing presses risk becoming obsolete, why not bet against yourself with decentralized assets? (Cue Wall Street's collective eye-roll at governments finally playing catch-up.)

Closing jab: Because nothing says 'sound money' like liquidating millennia's store of value to buy an asset that tweets memes.

Bitcoin Reserve Mentioned in U.S. Policy Discussions

The U.S. Treasury currently holds over 261 million troy ounces of gold, valued on paper at $42.22 per ounce. If revalued at the current market price of around $3,300, it could unlock about $850 billion in unrealised gains, equal to roughly 3% of U.S. GDP. This amount could fund new initiatives, including a proposed Strategic Bitcoin Reserve.

The reserve plan appears in the BITCOIN Act, introduced by Senator Cynthia Lummis. The bill WOULD allow the Treasury to purchase up to one million Bitcoin over five years and store them in a secure network managed by the government. It also includes transparency measures like cryptographic audits and long-term holding requirements.

Although the Fed’s paper does not take a position on the proposal, it points to past cases where similar moves failed to solve deeper economic problems. Still, the footnote referencing the U.S. Bitcoin reserve idea marks the first time the Federal Reserve has acknowledged such a concept in an official publication.

Bo Hines, Executive Director of the President’s Council of Advisers on Digital Assets, has also discussed the Gold revaluation idea. He said if it can be done without adding costs to taxpayers, it could be worth exploring.

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