U.S. Senator Cynthia Lummis has publicly called on the Treasury Department to consider using a portion of America's vast gold reserves to purchase Bitcoin, aiming to establish a strategic national Bitcoin reserve. The proposal, intended to help reduce national debt and bolster long-term financial stability, suggests the Treasury could sell part of its gold holdings or revalue its gold certificates at current market prices to fund the acquisitions.
Senator Lummis's plan outlines a potential acquisition of up to 1 million Bitcoin over the next five years. The United States currently holds the world's largest gold reserves, estimated at approximately 8,133 metric tonnes valued at nearly $1.3 trillion. Converting a fraction of this value into Bitcoin would diversify the nation's reserve assets and provide exposure to what proponents call a modern store of value. Lummis, a long-time Bitcoin advocate, believes such a move would help protect the country against inflation and currency depreciation.
The proposal gains context from the U.S. government's existing Bitcoin holdings. Treasury Secretary Scott Bessent recently highlighted the asset's long-term growth, noting that seized Bitcoin initially valued at around $500 million has ballooned to over $15 billion due to price appreciation. Overall, the government currently holds approximately 328,372 Bitcoin, worth about $22.3 billion, primarily from criminal seizures.
Despite Bitcoin being down nearly 45% from its recent peak, institutional demand remains robust. Firms like BlackRock, Fidelity, Strategy, and MARA Holdings have continued to increase their Bitcoin positions, signaling strong confidence in its long-term value. At the time of reporting, Bitcoin was trading around $68,202, up 2% in 24 hours, with a market capitalization of $1.36 trillion.
