President- elect Donald Trump and his team are developing a plan to establish a Bitcoin(BTC) reserve, and his allies have proposed selling some of the Federal Reserve’s gold to buy 1 million Bitcoins.
According to sources, Wyoming Republican Senator Cynthia Lummis has outlined a strategy to build Trump’s proposed strategic Bitcoin reserve without increasing the government deficit by selling some of the Federal Reserve’s gold. Lummis plans to introduce a Bitcoin Reserve bill when the new Congress convenes next year. As part of the proposal, the United States would be required to purchase 1 million bitcoins, which would represent nearly 5% of the total supply.
At current market prices ($87,540.02 per Bitcoin at the time of writing), this purchase would cost nearly $88 billion. However, if the bill is passed and investors begin buying before the government’s acquisition, the total cost may rise.
After the Republicans’ recent electoral victory, Senator Lummis announced plans for the U.S. to establish a Bitcoin reserve. Her Bitcoin Reserve Act aims to secure a BTC reserve as a means of strengthening the nation’s financial position.
Speaking on her plan, Lummis recently shared, “A Strategic Bitcoin Reserve will allow the US to address a meaningful portion of our debt + strengthen our hand. See ‘Currency Wars’ for a good primer on the ‘stupid games, stupid prizes’ cycle we are in. Let’s break the cycle and refocus on a prosperous future for Americans.”
The Bitcoin Reserve Act is set for consideration in mid-2025 and will draw lessons from El Salvador’s experience with Bitcoin, potentially opening an avenue for federal support of BTC adoption. Currently, El Salvador holds 5,935 BTC valued at approximately $523.36 million.
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Source: https://www.cryptonewsz.com/donald-trump-sell-fed-gold-buy-1m-bitcoins/