US Considers Selling Gold to Build Strategic Bitcoin Reserve

The US government is exploring ways to add Bitcoin to its strategic reserves without increasing taxpayer costs. Options include selling part of its gold reserves, utilizing the Exchange Stabilization Fund, or integrating Bitcoin purchases into new legislation.

The US Strategy to Build a Bitcoin Reserve Without Raising Costs

The idea of a Bitcoin strategic reserve has moved closer to reality following an executive order signed by President Donald Trump. This directive tasks Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick with devising strategies to acquire Bitcoin without burdening taxpayers.

According to Geoff Kendrick, head of digital asset research at Standard Chartered, the US government is considering three main approaches:

1. Selling a portion of the gold reserves to fund Bitcoin acquisitions.
2. Utilizing the Exchange Stabilization Fund (ERF) as a financial resource.
3. Incorporating a purchase plan into the BITCOIN Act of 2024, proposed by Senator Cynthia Lummis.

The primary goal is to ensure that the US can build a Bitcoin reserve while maintaining financial stability.

Selling Gold to Fund Bitcoin Purchases

The US gold reserves currently stand at 8,133.46 tons, with an estimated value of $758 billion. The government could sell a fraction of these holdings to finance Bitcoin purchases, maintaining a balanced budget without requiring additional taxpayer funding. This move aligns with the broader strategy of diversifying national assets beyond gold.

Using the Exchange Stabilization Fund

Another possibility involves tapping into the Exchange Stabilization Fund (ERF), a financial pool used for currency interventions. The ERF currently holds $39 billion in net assets, which could be redirected toward Bitcoin acquisitions. If implemented, this would signal a major shift in US economic policy, moving away from traditional currency stabilization toward digital asset accumulation.

The BITCOIN Act of 2024 and Legislative Support

Senator Cynthia Lummis has introduced the BITCOIN Act of 2024, which proposes allowing the US Treasury to acquire 1,000,000 BTC over five years. By integrating a structured purchase plan into federal legislation, the government could ensure that Bitcoin investments remain fiscally responsible and aligned with long-term policy goals.

The US Bitcoin Holdings and Future Outlook

Currently, the US government owns approximately 198,100 BTC, valued at $17.8 billion, primarily from law enforcement seizures. The Trump executive order prohibits selling these assets, reinforcing the concept of a long-term Bitcoin reserve.

The White House’s Crypto and AI Czar, David Sacks, has criticized past policies of selling seized Bitcoin, stating that the US has lost $17 billion in potential value by liquidating holdings instead of retaining them. This shift suggests a growing institutional acceptance of Bitcoin as a strategic asset.

Global Economic Implications

If the United States moves forward with a Bitcoin reserve, it could set a precedent for other nations. Countries with large gold reserves or foreign exchange reserves may reconsider their diversification strategies, potentially driving greater adoption of Bitcoin as a global asset.

At this stage, the choice between selling gold, using treasury funds, or passing new legislation remains uncertain. However, the outcome could reshape global finance, influencing how governments balance traditional and digital assets in their reserves.

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