Republican Senator Cynthia Lummis says converting gold reserves into Bitcoin could strengthen the U.S. government’s finances.
In an interview with CNBC, Lummis suggested that the Federal Reserve sell some of its gold reserves, which were valued at 1970s prices, and use the proceeds to buy Bitcoin (BTC).
See the clip below.
Lummis, known for her bullish support of cryptocurrency, believes that creating a strategic Bitcoin reserve could strengthen the dollar’s position as the world’s reserve currency and reduce the country’s debt burden.
She also suggested that Bitcoin, which is edging toward $100,000, could provide high returns.
Bitcoin can be considered a “gold standard digital asset” and creating a strategic reserve would be an essential step in its implementation, Lummis explained.
“We have reserves at our 12 Federal Reserve banks, including gold certificates that could be converted to current fair market value. They’re held at their 1970s value on the books. And then sell them into bitcoin, that way we wouldn’t have to use any new dollars in order to establish this reserve.”
Senator Cynthia Lummis
With the Trump administration’s growing interest in cryptocurrencies, Lummis said that legislation for digital assets could begin to be developed in the coming years.
