According to Bo Hines, the Executive Director of the Presidential Council of Advisers on Digital Assets, the United Nations is trying to find innovative methods to grow its Strategic Bitcoin Reserve without adding burden to the federal budget.
In a recent podcast with Anthony Pompliano, Hines said that the government is trying to explore different options to purchase more Bitcoin without affecting the federal budget. It will be using the Tariff revenue, gold revaluation and surplus funds to execute more Bitcoin purchases.
Tariffs May Play a Key Role
The government is considering using money earned from the trade tariffs. President Donald Trump has added new taxes in the past few weeks on products that are coming from China. Even though some taxes are put on pause, most of the tariffs are still active and are continuing to bring money to buy Bitcoin to create a Bitcoin reserve.
Hines said that money from these trade tariffs can be used to buy Bitcoin, as they are looking for more options, which include making use of money from tariffs. He said that the main goal of the plan is to use the money which the government already has so that budget neutrality can be maintained and does not cost taxpayers any extra.
Gold Certificate Revaluation
Another idea that is being considered is updating the value of the U.S. Treasury gold certificates. The gold certificates issued by US treasury are valued at an old price which is generally outdate. The price is currently recorded to roughly $43 per ounce. This comes even when the price of gold is valued at $3,000 per ounce.
According to source, the government believes that it can free up a lot of money if it updates the values to match the current gold prices. Hines explained that the difference between the old price of gold and the current market price has created a big opportunity. The extra value can be used to increase the Bitcoin reserve.
From Seized Assets to Bitcoin Reserve
On March 6, 2025, President Donald Trump signed an executive order that aimed at creating a government reserve backed by Bitcoin. Hence, the Strategic Bitcoin Reserve was started in the first quarter of 2025. The start of a collection of Bitcoin was a kick start to what has now become a larger and more active plan for the country.
This change showed that the government is more focused on including digital assets in its financial plans by using a creative approach which does not increase spending or taxes.
No Set Limit on Bitcoin Accumulation
When it was asked how much Bitcoin the U.S. wants to hold, Hines said that there is no need to set a specific amount, he said that though some politicians have made the suggestions that one million BTC can be collected, he thinks that focus must be on long-term accumulation.
He said that there should not be any limit, just like gold, if something has a value, you will want to get it as much as you can.
Conclusion
The U.S government is planning to increase its Bitcoin reserve, this shows that tmit is taking digital assets seriously. By using money from trade tariffs and updated gold values ,it does not need to spend or increase the taxes. This approach can be inspiration for other countries to do the same without increasing their taxes.
FAQs
1. How will US support its Bitcoin reserve
The US will support its Bitcoin reserve through Tariff revenue, gold revaluation and surplus money.
2. What is gold certificate revaluation?
The US may update the value of its gold certificates to match current gold prices.
3. Under whose administration will the 2025 Bitcoin reserve take place?
Under Donald Trump’s administration, the 2025 Bitcoin reserve will take place.
4. How does considering gold revaluation help the US strategic Bitcoin reserve?
Revising the gold price releases money that can be used to buy Bitcoin.
5. What did Hines say about the limit on Bitcoin?
Bo Hines said Bitcoin will work as gold reserve without any limit.
Glossary
Bitcoin Reserve: A Bitcoin collection held by the government.
Surplus Funds: Extra money from the government’s budget.
Seized Assets: Property taken by the government
Strategic Bitcoin Reserve: A government plan to collect more Bitcoins for long-term financial strategy.
Long-Term Accumulation: Collecting assets over time without a set limit.
Sources
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