{"id":40946,"date":"2025-08-07T11:31:46","date_gmt":"2025-08-07T11:31:46","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=40946"},"modified":"2025-08-07T11:31:46","modified_gmt":"2025-08-07T11:31:46","slug":"bitcoin-reserve-plan-gets-federal-reserve-review-in-latest-report","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=40946","title":{"rendered":"Bitcoin Reserve Plan Gets Federal Reserve Review In Latest Report"},"content":{"rendered":"
\n

A new Federal Reserve research note has given the most detailed official assessment to date of proposals to finance a US Strategic Bitcoin Reserve (SBR) by re-marking the Treasury\u2019s gold hoard to market\u2014and the verdict is cautious. In \u201cOfficial Reserve Revaluations: The International Experience,\u201d senior economist Colin Weiss reviews five historical cases in which governments tapped unrealised gains on gold and foreign-exchange reserves and weighs what such a manoeuvre might mean for the United States.<\/p>\n

\u201cWith public debt at high levels,\u201d Weiss writes<\/a>, \u201csome governments have begun to explore financing additional expenditures without raising taxes while also not increasing public debt outstanding. One possibility is using proceeds from valuation gains on gold reserves, as has been floated in the US and Belgium recently.\u201d<\/p>\n

US Federal Reserve Acknowledges Bitcoin Reserve<\/h2>\n

For Washington, the arithmetic is eye-catching. Revaluing the Treasury\u2019s 261.5 million troy ounces of gold from the statutory price of $42.22 to the current market level\u2014about $3,300\u2014would unlock roughly $850 billion, an amount the Fed note pegs at \u201cabout 3 percent of US GDP.\u201d That windfall has become the preferred pay-for in Senator Cynthia Lummis<\/a>\u2019 BITCOIN Act, introduced last year, which would create a federal stockpile of up to one million bitcoins over five years.<\/p>\n

The Fed paper stops short of policy advocacy, but its survey is hardly encouraging for enthusiasts who see reserve revaluation as fiscal free money<\/a>. In every precedent\u2014the 1997 German episode, Lebanon in 2002, Italy in 2002, Cura\u00e7ao and St Martin in 2021-22, and South Africa last year\u2014\u201cdrawing on revaluation proceeds may not address larger structural challenges,\u201d Weiss warns, citing Lebanon\u2019s rising debt ratio even after using gold gains to retire Treasury bills.<\/p>\n

Crucially for the market, the note acknowledges the Bitcoin dimension in a footnote that has drawn wide attention on Capitol Hill: \u201cIn the US, the idea has come up in the context of helping to establish a strategic bitcoin reserve or a sovereign wealth fund, and the use of revaluation proceeds was proposed in recent legislation by Senator Lummis.\u201d Although bracketed as an aside, the reference amounts to the first time a Federal Reserve publication has explicitly analysed the mechanics underpinning a Bitcoin reserve bill.<\/p>\n

Lummis\u2019s 118th-Congress proposal\u2014formally the Boosting Innovation, Technology and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act\u2014would \u201cestablish a Strategic Bitcoin Reserve \u2026 to ensure the transparent management of Bitcoin holdings of the Federal Government,\u201d according to the bill text.<\/p>\n

Under Section 5, the Treasury would be authorised to purchase up to 200,000 Bitcoin a year\u2014capped at one million coins, about five percent of eventual supply\u2014while a 20-year minimum holding period would shield the cache from political meddling. Section 6 mandates quarterly cryptographic \u201cproof-of-reserve\u201d attestations, and Section 7 would consolidate forfeited Bitcoins held by agencies such as the US Marshals Service into the new vault network. Funding relies heavily on the gold revaluation gambit: Section 9 instructs the Federal Reserve Banks to tender their gold certificates for re-issuance at fair-value prices and diverts up to $6 billion a year of Fed remittances through 2029 to offset the purchase program.<\/p>\n

Notably, Bo Hines, the executive director of the President\u2019s Council of Advisers on Digital Assets, has also repeatedly mulled the option to revalue gold to buy more Bitcoin in a budget-neutral way as instructed by US President Donald Trump\u2019s executive order from March 6<\/a>. \u201cIf it\u2019s budget-neutral and doesn\u2019t cost the taxpayer a dime, we\u2019ll see whatever creative ideas we can come up with,\u201d Hines said.<\/p>\n

At press time, BTC traded at $114,776.<\/p>\n

\"Bitcoin<\/div>\n","protected":false},"excerpt":{"rendered":"

A new Federal Reserve research note has given the most detailed official assessment to date of proposals to finance a US Strategic Bitcoin Reserve (SBR) by re-marking the Treasury\u2019s gold hoard to market\u2014and the verdict is cautious. In \u201cOfficial Reserve Revaluations: The International Experience,\u201d senior economist Colin Weiss reviews five historical cases in which governments […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-40946","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/40946","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=40946"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/40946\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=40946"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=40946"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=40946"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}