New legislation proposed in Washington, D.C. aims to create a U.S. Strategic Bitcoin (BTC) Reserve through the revaluing of gold certificates.
The proposed legislation comes days after former U.S. President Donald Trump said he would use the U.S. government's existing Bitcoin holdings to create a “national Bitcoin stockpile.”
According to the draft bill, titled “Bitcoin Act of 2024,” the U.S. Treasury would establish a “Bitcoin Purchase Program” of up to 200,000 Bitcoin a year over a five-year period, for a total of one million digital tokens.
The acquired Bitcoin would be held for at least 20 years and could only be disposed of for the purpose of paying off America’s federal debt.
After that, no more than 10% of the assets could be sold during any two-year period.
The legislation also proposes revaluing the Federal Reserve’s gold certificates to reflect their fair market value.
Under the plan, within six months of the legislation becoming law, Federal Reserve banks would tender all of their gold certificates to the U.S. Treasury.
Within 90 days after that, the Treasury would issue new gold certificates to the Federal Reserve banks that reflect the fair market value price of the gold.
The Federal Reserve banks would then remit the difference in cash value between the old and new certificates to the Treasury.
The proposed legislation is in its early stages and it is not clear if it will eventually pass through Congress and become law.
In his recent remarks, Trump stopped short of proposing a Strategic Bitcoin Reserve.
The price of Bitcoin is up 50% this year and currently trading at $66,400 U.S.
