"US May Sell Gold Holdings to Secure Budget for Bitcoin (BTC) Reserves"

JH Kim

Summary

Standard Chartered has stated that the US may sell its gold holdings to secure a budget for Bitcoin reserves.
Besides selling gold, options such as using the Treasury Department's Exchange Stabilization Fund or amending the '2024 Bitcoin Act' to purchase Bitcoin are also being considered.
The US Bitcoin reserve plan could have a significant impact on the market, making it important for investors to pay attention.

According to cryptocurrency specialist media The Block on the 7th (local time), Standard Chartered (SC) analyzed in a report that "the United States may sell its gold holdings to secure a budget for Bitcoin (BTC) reserves."

The report explained, "The key to this reserve executive order is finding ways to secure additional BTC while remaining budget-neutral," adding, "In other words, it must be implemented without additional budget expenditure."

It continued, "One strategy for this could be for the US government to sell its gold holdings and purchase Bitcoin," adding, "Currently, the US government holds approximately $760 billion worth of gold."

The report also stated, "Another option is to utilize the Treasury Department's Exchange Stabilization Fund (ESF). This fund currently holds assets worth $39 billion," emphasizing that "Additionally, it's possible to amend parts of Senator Cynthia Lummis's '2024 Bitcoin Act' to purchase 200,000 BTC over five years in a budget-neutral manner."

SC finally analyzed that "The announcement of the US BTC reserve plan is likely to cause 'FOMO' (Fear Of Missing Out) in other countries," adding, "Abu Dhabi already holds IBIT (Bitcoin ETF) worth 4,700 BTC, and other sovereign wealth funds are expected to join the Bitcoin purchasing trend."

Meanwhile, the White House is scheduled to hold a Crypto Summit at 4 AM (Korean time) on the 8th.