Senator Lummis Proposes Selling U.S. Gold Reserves to Buy Bitcoin
Staff Writer • 2025-03-22
Bold Five-Year Plan Would Add 1 Million BTC to National Treasury Senator Cynthia Lummis has introduced a provocative new proposal: sell off U.S. gold reserves and use the proceeds to buy Bitcoin. Under her plan, the U.S. government would purchase 200,000 Bitcoins annually for five years, effectively shifting part of the nation’s monetary foundation from gold to digital gold. This plan would redefine modern reserve strategy, replacing one of the oldest forms of sovereign wealth protection with one of the newest and most volatile. If implemented, the United States would hold over 1 million BTC—roughly 5% of the current total supply—making it the largest sovereign holder of Bitcoin by far. From Gold Bars to Digital Blocks Lummis’ proposal reflects her long-standing belief in the future of cryptocurrency. The Wyoming senator has been one of Capitol Hill’s most vocal Bitcoin advocates, previously sponsoring legislation aimed at creating a regulatory framework for digital assets. Now, she’s taking her vision a step further by replacing the country’s 261 million troy ounces of gold with Bitcoin—a move that could spark global debate over what constitutes true financial security. According to the plan, the gold-to-Bitcoin conversion would take place over a five-year horizon, allowing the market to absorb the demand gradually while giving the U.S. Treasury time to build secure custody infrastructure. Strategic or Reckless? The Debate Begins Critics argue that Bitcoin's volatility, lack of physical backing, and regulatory uncertainty make it an unsuitable replacement for gold. Others believe that Bitcoin’s scarcity, decentralization, and resistance to inflation make it a better long-term store of value than gold ever was. Still, Lummis’ proposal comes at a time when multiple governments are exploring the integration of crypto into national strategy. Some see it as a hedge against fiat debasement and central bank overreach. Others call it a geopolitical power play, especially as U.S. rivals like Russia and China are experimenting with digital assets for trade and reserves. Bitcoin as a Strategic Reserve Asset? The proposed transition signals a potential paradigm shift in global financial infrastructure. Gold has long been considered the ultimate safe-haven asset. But with rising debt, inflation fears, and a rapidly evolving digital economy, Lummis’ Bitcoin pivot could set a precedent for reserve diversification in the 21st century. If the plan gains traction, it could send shockwaves through both the gold and crypto markets, potentially leading to higher Bitcoin prices and increased volatility in traditional commodities. While still just a proposal, Lummis’ bold move forces a question few expected Washington to seriously consider this soon: Should Bitcoin become the foundation of America’s financial future?
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