Wyoming Republican Senator Cynthia Lummis has proposed a plan to sell the Federal Reserve's gold to purchase Bitcoin, in order to establish a strategic reserve of Bitcoin. Analysis suggests that the gold owned by the Federal Reserve is sufficient to buy 1 million Bitcoins, but liquidating government gold could potentially lower market prices. Cynthia Lummis stated that the impact on the U.S. balance sheet is neutral.

Odaily Planet Daily reports that Wyoming Republican Senator Cynthia Lummis previously proposed a plan to sell some of the Federal Reserve's gold in order to establish a Bitcoin strategic reserve, as suggested by the presidential candidate, without increasing the government deficit. 

Analysts believe that theoretically, the gold held by the Federal Reserve is sufficient to purchase 1 million Bitcoins, with a considerable surplus remaining. The Federal Reserve's balance sheet lists certificates representing gold held by the Treasury, valued at approximately 11 billion dollars. However, this value is based on the so-called statutory price, which has been fixed at 42.2222 dollars per ounce since 1973. At current spot prices, the value of this batch of gold is around 675 billion dollars, but liquidating a large amount of government gold could pose risks of depressing market prices. Based on current market prices, purchasing such a quantity of Bitcoin would cost approximately 90 billion dollars, but if Cynthia Lummis's proposal is passed, investors might rush to buy before the U.S. government, potentially increasing the purchase amount.

Cynthia Lummis explained, "We already have financial assets in the form of gold certificates that can be converted into Bitcoin. Therefore, the impact on the U.S. balance sheet is very neutral." (Bloomberg)

U.S. Senator: Selling gold to buy Bitcoin has a very neutral impact on the U.S. balance sheet.