U.S. Explores Bitcoin Reserve with Gold Revaluation
- U.S. drafts “BITCOIN Act” for potential reserve funding.
- 200,000 BTC plan linked to gold revaluation.
- Political backing but no official policy adoption yet.
The United States is considering a Bitcoin reserve, funded by revaluating its gold holdings, through the proposed BITCOIN Act backed by Senator Cynthia Lummis and President-elect Donald Trump.
The proposal signals a potential shift in U.S. financial strategy, boosting Bitcoin’s market and sparking a 35% price increase post-election amid speculative investor interest.
The U.S. Senate introduced the “BITCOIN Act” aiming to build a Bitcoin reserve funded through gold revaluation, with key political endorsements.
This plan could shift U.S. reserves strategy and impact Bitcoin’s market via potential large-scale acquisition.
U.S. “BITCOIN Act” Tied to Gold Revaluation
The proposed “BITCOIN Act” seeks to use gold revaluation funds for a Bitcoin reserve. Endorsements are led by Senator Lummis and President-elect Trump. Senator Cynthia Lummis, U.S. Senate, stated, “Funds remitted… shall be reserved… to purchase 1,000,000 Bitcoins under the program” [4].
The legislation advocates for a major shift in U.S. reserve policy, aiming for 1,000,000 BTC over five years. Political figures are central to this proposal’s momentum.
Potential U.S. Bitcoin Buy Spurs Market Speculation
The potential acquisition of Bitcoin by the U.S. has already influenced market prices and generated speculation among investors and lawmakers.
The initiative emphasizes the U.S. aligning with modern crypto dynamics, affecting governmental balance sheets and broader economic strategies.
Gold Revaluation: Historical Impacts and Modern Analysis
Previous gold revaluations in the 1970s set precedent for balance sheet effects. Similar strategies have prompted market reactions and asset value adjustments.
Projections suggest that introducing Bitcoin to reserves could enhance financial stability and align with El Salvador and corporate strategies. Analysts speculate on price and demand outcomes, as discussed in recent Federal Reserve Analysis.
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