The Federal Reserve is examining the potential use of profits from gold reserves to establish a strategic bitcoin reserve.
A recent report by the Federal Reserve has sparked debate over whether the U.S. government could fund bitcoin acquisitions using gains from the revaluation of its official gold holdings.
The study, titled “Official Reserve Revaluations: The International Experience”, outlines how five countries have used profits from their official gold reserves to raise liquidity. While it does not explicitly propose that the U.S. follow suit, the document explains the steps involved and what to expect if a similar path were pursued.
The report reviews the cases of Germany, Italy, Lebanon, Curaçao and Saint Martin, and South Africa. Some of these countries used revaluation proceeds to reduce public debt, while others applied them to cover central bank losses.
Currently, the U.S. Treasury values its gold reserves at $42.22 per ounce, a price set in 1973. The Treasury holds 261.5 million ounces, most of it stored at Fort Knox, Kentucky. At the official price, this gold is worth about $11 billion, but at today’s market price, it would be worth over $750 billion.
The Trump administration has already taken initial steps toward creating a strategic bitcoin reserve. On March 6, the U.S. President signed an executive order formally establishing a bitcoin reserve, using only the digital assets previously seized by the Treasury.
