Bitcoin News Today: Fed Considers Gold Gains to Fund Proposed Bitcoin Reserve

The U.S. Federal Reserve is examining the potential use of gold profits to support a national Bitcoin reserve, according to a research note published on August 1, 2025, by senior Fed economist Colin Weiss[1]. The document explores how several countries have leveraged gold and currency revaluation gains to finance expenditures without increasing debt or raising taxes. Weiss reviewed case studies from Germany, Lebanon, Italy, Curaçao, and South Africa to highlight how nations have tapped into their asset reserves for strategic spending. He noted that using gold valuation gains as a funding source is an emerging approach, with similar ideas being considered in the U.S. and Belgium.

Currently, the U.S. Treasury holds over 261 million troy ounces of gold, valued at $42.22 per ounce on its books. However, at the current market price of approximately $3,300 per ounce, this would represent roughly $850 billion in unrealized gains—nearly 3% of U.S. GDP[1]. This valuation gap has sparked discussions on how the U.S. might revalue its gold holdings to generate capital for new initiatives, including a proposed Strategic Bitcoin Reserve.

The Bitcoin reserve proposal appears in the BITCOIN Act, introduced by Senator Cynthia Lummis. Under the bill, the Treasury would be authorized to acquire up to one million Bitcoin over five years and store them in a government-managed secure network. The legislation also includes measures for transparency, such as cryptographic audits and long-term holding requirements[1]. While the Fed’s note does not explicitly endorse the proposal, it acknowledges the idea in a footnote, marking the first time the Federal Reserve has referenced a U.S. Bitcoin reserve in an official document[1].

Bo Hines, Executive Director of the President’s Council of Advisers on Digital Assets, has similarly highlighted the potential of using gold revaluation as a cost-neutral funding mechanism. He emphasized that if implemented without additional taxpayer costs, the approach could be a valuable tool for future financial strategies[1]. As Bitcoin trades near $116,000, the growing interest in the Fed’s note reflects broader policy discussions about the evolving role of digital assets in national finance.

Source:

[1] Fed Note Explores Using Gold Profits to Fund U.S. Bitcoin Reserve

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