Geoff Kendrick, leading digital assets researcher at Standard Chartered, has suggested financing the new U.S. Strategic Bitcoin Reserve by selling part of the country's gold reserves without increasing the budget.
Proposal to Sell Gold Reserves
Kendrick believes that selling part of the U.S. gold reserves, valued at about $760 billion, could be used to buy Bitcoin. This would avoid budget strain and comply with President Donald Trump's executive order that created the reserve.
Alternative Funding Methods
Kendrick also mentioned the possibility of using the Exchange Stabilization Fund (ESF), which holds $39 billion in assets, to fund the reserve. Additionally, Senator Cynthia Lummis's Bitcoin Act proposes allocating 200,000 BTC each year for five years, which may be budget-neutral if properly planned.
Implications and International Reaction
While a summit discussion with President Trump is planned, Kendrick does not anticipate immediate action. He suggests that this U.S. move could inspire other countries to adopt similar strategies, referencing Abu Dhabi's recent Bitcoin investments.
Kendrick's proposal to fund the U.S. Strategic Bitcoin Reserve by selling gold reserves could mark a significant policy shift and potentially inspire other nations to follow suit.
