Elon Musk’s Division of Authorities Effectivity (D.O.G.E) has its subsequent mission: discover out if Fort Knox really holds the 4,580 tons of gold it claims to have. Elon was pulled into the controversy right this moment when an X consumer requested him to test if the US gold reserves nonetheless exist.
Elon responded, “Absolutely it’s reviewed at the very least yearly.” The US Treasury claims that Fort Knox holds $425 billion value of gold at market charges, however the final time anybody really noticed it was in 2017, when Treasury Secretary Steve Mnuchin visited.
Earlier than that? 1974, when journalists and lawmakers had been allowed inside after rumors of lacking gold began spreading. The vault stays one of the restricted areas on Earth, and no single individual is aware of all of the steps to open it.
Rand Paul calls for solutions, Lummis says Bitcoin is the answer
That single reply set off a political chain response, with Senator Rand Paul calling for an official audit and Senator Cynthia Lummis reiterating her favourite radical various—exchange gold with Bitcoin.
Rand Paul, who has lengthy supported authorities transparency, jumped in instantly after Elon’s put up. “Nope. Let’s do it,” Paul wrote, making it clear he needs a full-scale audit of the reserves. His father, Ron Paul, pushed for gold audits for years, arguing that Individuals haven’t any proof the gold even exists, which is sort of attention-grabbing, isn’t it?
Anyway, Lummis advised Elon, “Bitcoin fixes this. A bitcoin reserve may very well be audited anytime 24/7 with a fundamental laptop. It’s time to improve our reserves.” Elon responded to her suggestion with an emoji that symbolizes considering, possible which means he’s gonna give it some thought.
Bitcoin is clear to a fault, not like Fort Knox, which stays locked away with no public verification. Her proposal? Ditch gold, purchase Bitcoin, and create a US strategic BTC reserve.
The US Mint claims Fort Knox holds 147.3 million ounces of gold, however right here’s the issue—the federal government values it at $42.22 per ounce, which places the official whole at simply $6.2 billion. That valuation is a joke—gold trades at practically $2,900 per ounce, making the true worth round $425 billion, as aforementioned.
In the meantime, Lummis has already launched the BITCOIN Act within the Senate, which lays out a plan for the US to create its first official Bitcoin reserve. In response to the BICTOIN Act, the plan consists of 1 million Bitcoin acquisition program, which might make up 5% of all BTC provide. Lummis additionally needs to safe Bitcoin vaults run by the US Treasury, designed with each bodily and digital safety measures. Funding can be pulled from present Federal Reserve and Treasury funds, which means no new taxpayer spending, in line with the BITCOIN Act.
Lummis additionally wrote that there must be authorized protections for Bitcoin self-custody, which can ensure that Individuals can maintain their BTC with out interference.
By way of a put up on X, Lummis referred to as the plan a “Louisiana Buy second”, evaluating it to the huge land acquisition that doubled US territory in 1803. The crypto-loving Senator didn’t count on it, however Trump endorsed the Bitcoin reserve thought.
His administration is in fact formally crypto-friendly, and he’s brazenly thought of making a sovereign wealth fund backed by Bitcoin. His help might imply the distinction between Congress approving the reserve or blocking it totally.
The US authorities already holds 200,000 BTC, largely from asset seizures dealt with by the US Marshals, and so Lummis needs that Bitcoin moved into the Treasury to kickstart the reserve. She’s additionally taking a look at changing outdated US gold certificates into BTC, which might tie Bitcoin straight into the federal monetary system.
In the meantime, states aren’t ready for Washington. Pennsylvania, Texas, Wyoming, Arizona, Wisconsin, and lots of others are already exploring state-based Bitcoin reserves, with much more states anticipated to comply with.
