Senior White House advisor Bo Hines has proposed using US gold reserves to fund a strategic Bitcoin reserve while maintaining budget neutrality.
Budget-Neutral Funding Through Gold Reserves
Bo Hines discussed the possibility of using gold certificates to acquire Bitcoin. He noted that these certificates are undervalued compared to current market gold prices, which could provide the US with the means to establish a Bitcoin reserve without additional tax burdens.
How Revaluing Gold Certificates Works
According to the Federal Reserve Bank of St. Louis, gold certificates are valued at $42.22 per troy ounce, while the market price is $3,037. The US owns approximately 260.8 million troy ounces of gold, which could be revalued to unlock over $780 billion.
Potential Challenges and Alternatives
Revaluing gold certificates could face resistance from the Federal Reserve and the Treasury Department as it may affect monetary policy. As alternatives, the US could consider issuing Bitcoin-backed bonds or using confiscated assets from criminal crypto activities.
Revaluing gold certificates could pave the way for funding a strategic Bitcoin reserve without increasing taxpayer burden, though it involves potential risks and alternatives.
