U.S. proposes to build a strategic bitcoin reserve by revaluing the gold portion of its financing

A new Strategic Bitcoin Reserve would be partially funded by revaluing the Federal Reserve's gold, according to a draft piece of legislation introduced by U.S. Senator Cynthia Lummis. The plan is to purchase up to 200,000 bitcoins per year for five years, totalling one million bitcoins. The bitcoins would be held for at least 20 years and used primarily to pay down federal debt. The draft also proposes a decentralised network of secure bitcoin storage facilities across the US. In addition, the plan includes allocating $6 billion from the Fed's net earnings and reducing the Fed Bank's own funds to $2.4 billion between fiscal years 2025 and 2029. Revaluing the Fed Bank's gold certificates to reflect their fair market value is also in the plan. The current market value of the Fed's gold holdings is approximately $11 billion, with a market price of approximately $2,400 per ounce.