Recently, U.S. President Donald Trump
Donald Trump Donald Trump is an American former president politician, businessman, and media personality, who served as the 45th president of the U.S. between 2017 to 2021. Trump earned a Bachelor of science in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election as the Republican Party nominee against Democratic Party nominee Hillary Clinton while losing the popular vote. As president, Trump ordered a travel ban on citizens from several Muslim-majority countries, diverted military funding toward building a wall on the U.S.–Mexico border, and implemented a family separation policy. Trump has remained a prominent figure in the Republican Party and is considered a likely candidate for the 2024 presidential election President signed an executive order to create a strategic cryptocurrency reserve. But with Bitcoin’s price soaring, how can the U.S. government afford to stack BTC without dipping into taxpayer funds? That’s where VanEck
VanEck – Cryptocurrency investment steps in with some surprisingly creative ideas.
From revaluing gold to selling off surplus cheese, VanEck has proposed unconventional ways for the U.S. to expand its Bitcoin holdings—without printing more money or raising taxes. Some of these ideas could be put into action quickly, while others would require major policy shifts. Either way, they open the door to a future where Bitcoin plays a key role in U.S. reserves.
Could these strategies actually work? Let’s break them down.
1. Revaluing Gold to Unlock Funds
The U.S. holds vast gold reserves, but they are valued at a much lower official price than their current market worth. VanEck suggests that Congress could update this valuation, instantly increasing the paper value of these reserves. The extra capital generated could then be used to buy Bitcoin—without printing new money or raising taxes.
2. Issuing Bitcoin-Backed Bonds
Another option is for the government to create and sell “Bitcoin-backed bonds.” Investors would buy these bonds, and a portion of the money raised would go toward purchasing BTC. When the bonds mature, the government could repay investors either in Bitcoin or U.S. dollars, offering a flexible investment opportunity.
3. Using Federal Reserve Surplus
Before 2015, the Federal Reserve was allowed to keep a larger surplus of funds. VanEck suggests bringing back this policy so that the Fed can build up extra reserves and use them to buy Bitcoin. This would provide a direct way for the government to acquire BTC without needing new congressional spending approvals.
4. Adding Bitcoin to IMF’s Special Drawing Rights
Special Drawing Rights (SDRs) are international reserve assets issued by the International Monetary Fund (IMF). VanEck proposes convincing the IMF to include Bitcoin in SDRs, making it a recognized global reserve asset. If approved, this would further cement Bitcoin’s role in international finance.
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5. Selling Surplus Cheese for Bitcoin
The U.S. government holds large stockpiles of surplus cheese. VanEck suggests selling off these reserves and using the proceeds to buy Bitcoin. Since this involves selling existing assets rather than increasing spending, it wouldn’t impact the federal budget deficit. At the same time, it would help the government manage its excess inventory more efficiently.
6. Using the Treasury’s Exchange Stabilization Fund
The Exchange Stabilization Fund (ESF), controlled by the U.S. Treasury, is used to manage foreign exchange reserves and stabilize the dollar. VanEck’s final proposal is for the Treasury to use this fund to buy and hold Bitcoin. Since the ESF operates outside the normal budget process, this method would offer a more flexible approach to BTC accumulation.
VanEck’s proposals highlight several ways the U.S. could acquire Bitcoin without adding financial strain on taxpayers. While some ideas require congressional approval, others—like selling surplus assets—could be implemented quickly. If adopted, these strategies could reshape how the U.S. government approaches cryptocurrency investment.
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Source: https://coinpedia.org/news/vaneck-proposes-6-ways-for-the-us-to-buy-bitcoin-without-taxpayer-money/