Senator Lummis Urges Treasury to Use Gold Reserves for Bitcoin
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U.S. Senator Cynthia Lummis has called on the Treasury Department to consider using America’s gold reserves to buy Bitcoin. The move aims to create a strategic Bitcoin reserve that could help reduce national debt and strengthen long-term financial stability.
Lummis Urges Treasury to Use Gold Reserves for Bitcoin
Senator Lummis proposed that the U.S. Treasury could sell part of its gold holdings or revalue its gold certificates based on current market prices to fund Bitcoin purchases. Her plan suggests acquiring up to 1 million Bitcoin over the next five years.
The United States currently holds the world’s largest gold reserves, totaling about 8,133 metric tonnes. These reserves are estimated to be worth around $1.3 trillion at current market prices.
By converting a portion of this value into Bitcoin, the U.S. could diversify its reserve assets and gain exposure to what many consider a modern store of value.
Lummis has long supported Bitcoin and believes it could help protect the country against inflation and currency weakening over time.
Bitcoin’s Strong Performance Strengthens Lummis Demand
Treasury Secretary Scott Bessent recently highlighted Bitcoin’s long-term growth by pointing to seized Bitcoin assets held by the government. These assets were initially valued at around $500 million but have grown significantly to more than $15 billion due to Bitcoin’s price increase over the years.
Currently, the U.S. government holds approximately 328,372 Bitcoin, worth around $22.3 billion. Most of these holdings came from criminal seizures rather than direct purchases.
This strong growth has increased interest among policymakers and institutions in holding Bitcoin as part of long-term financial reserves.
Institutional Demand for Bitcoin Continues Rise
Despite Bitcoin falling nearly 45% from its recent peak, major institutions and financial firms continue to accumulate the asset. Companies like BlackRock, Fidelity, Strategy, and MARA Holdings have increased their Bitcoin positions, showing strong confidence in its long-term value.
However, institutional buying remains a key factor supporting Bitcoin’s growth. As of now, Bitcoin is trading around $68,202, up 2% in the last 24 hours, with a market cap of $1.36 trillion.
FAQs
Why does the U.S. want to create a strategic Bitcoin reserve?
The goal is to diversify national reserve assets, reduce national debt, and protect against inflation by holding Bitcoin as a modern store of value.How much Bitcoin does the U.S. government currently own?
The U.S. government currently holds approximately 328,372 Bitcoin, mostly seized in criminal cases, currently worth over $22 billion.Is it a good time for institutions to buy Bitcoin after its price drop?
Despite a recent 45% drop from its peak, major firms like BlackRock are buying, signaling strong long-term confidence in Bitcoin’s value.
source: https://www.tradingview.com/news/coinpedia:a574879b5094b:0-senator-lummis-urges-treasury-to-use-gold-reserves-for-bitcoin/