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The US strategic Bitcoin (BTC-USD) reserve is worth 1.2 trillion yen (XAUUSD:CURCoinDesk reported earlier this week, citing a proposed bill that would ban the misuse of cryptocurrency certificates held by the Federal Reserve.
The bill proposed by Senator Cynthia Senator Lummis (R-Wyo.) spoke at the Bitcoin Nashville Conference over the weekend, saying the Treasury Department will “create a secure decentralized Bitcoin network (BTC-USD) storage facilities throughout the United States,” the draft bill states.
Lammis’ proposal came shortly after former president and Republican candidate Donald Trump endorsed the idea of ​​using the government’s current Bitcoin reserves – obtained primarily through criminal confiscation and seizure – as the basis for a new National Strategic Bitcoin (BTC-USD) reserve.
“The United States government is one of the largest holders of Bitcoin. The federal government holds approximately 210,000 Bitcoin, which represents 1% of the total future supply,” Trump said near the end of his speech.
According to the draft bill, a “Bitcoin Buying Program” would be established under the Treasury Department to purchase up to 200,000 Bitcoin (BTC-USD) per year for five years, for a total of 1 million tokens, CoinDesk reports. The coins would be HODLed for at least 20 years and could only be sold to repay federal debt. From there, no more than 10% of the assets could be disposed of during the two-year period.
The plan would also require the allocation of $6 billion from net income transfers from the Fed to the Treasury from fiscal years 2025 through 2029. It would also reduce the amount of discretionary surplus funds held by the Fed to $2.4 billion from $6.825 billion currently required by the Federal Reserve Act.
The bill requires the Fed to turn over all of its gold (XAUUSD:CUR) securities to the Treasury within six months of the bill becoming law. Coindesk “The Treasury will then issue new gold certificates to the Fed at the fair market value of gold within 90 days. From there, the Fed will pay the Treasury the difference between the value of the old certificates and the new certificates in cash.”
According to the Federal Reserve’s latest balance sheet: updatethe Fed held $11 billion worth of “gold inventory” as of June 24, 2024.
