Senator Lummis: US Treasury's gold reserves should be converted to Bitcoin

Senator Cynthia Lummis of Wyoming has proposed converting some of the gold held by the U.S. Treasury Department into Bitcoin and setting up a strategic Bitcoin reserve.
In an interview with Bloomberg on the 17th (local time), Senator Lummis said, "If the gold certificates held by the US Treasury were converted into Bitcoin, it would be worth about $10,000 at the current market price.
"In exchange for spending $90 billion, we can keep the immediate impact on the government's fiscal position neutral."
The United States government has the largest gold reserves in the world, with over 8,000 tonnes held in the Treasury.
Lummis has previously called for the Treasury Department to convert some of its assets into a strategic reserve for bitcoin, but has not said what assets it should sell.
When the Bitcoin Strategic Stockpile Bill was introduced in the Senate, Senator Lummis said, "At a time when Wyoming families are suffering from soaring inflation and the national debt is at an all-time high,
"It is of utmost importance to prepare a reserve," he said. Lummis' Bitcoin strategic reserve plan calls for the holding of 1 million BTC, equivalent to 5% of the total Bitcoin supply, for 20 years.
That goal would require roughly $90 billion at current market prices, according to investor and asset manager Anthony Pompliano.
Pompliano has recently argued that in the global race to secure bitcoin among sovereign nations, the multi-billion dollar price tag is a perfectly reasonable cost.
He also said, "The national debt has increased by $850 billion in the last 90 days. If we invested that $850 billion in Bitcoin, that would be half of the current market cap.
So $50 billion to $100 billion is a small margin of difference relative to the scale of government spending, and I think that's a risk/reward ratio that's well worth it."
Mike Novogratz, CEO and founder of Galaxy Digital, said he expects Bitcoin to grow under the administration of recently elected President Donald Trump.
He said the chances of the strategic reserve coming to fruition are slim. However, if the strategic reserve were to be implemented under the new Trump administration, the price of Bitcoin could soar to $500,000 per BTC.
I expect there is a possibility that this will happen.