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Expert Says US Selling Gold to Fund Bitcoin Purchases Will Be Huge

March 24, 2025

Bitcoin and Gold

Crypto industry commentators believe the proposition for the U.S. to leverage its gold holdings to acquire Bitcoin is advantageous, even for altcoins.
This came after Bo Hines, the director of the Presidential Working Group for Crypto Assets, hinted that reassessing the value of the government’s gold to acquire Bitcoin with the gains was one of the budget-neutral options the government is exploring in its pursuit of a BTC reserve.

Hines shared this perspective during an interview with Crypto In America podcast host Eleanor Terrett. During the conversation, Hines cited the Bitcoin Act 2025, introduced by Senator Cynthia Lummis, which aims for the U.S. to accumulate 1 million BTC tokens. The plan would fund this acquisition by reassessing gold certificates held by the Federal Reserve.

Hines noted that U.S. gold certificates have surged significantly in value over the past several years since they were last categorized. He mentioned that if the government realizes those accrued gains, it will allow them to acquire more Bitcoin without impacting taxpayer money.
This confirmation from a senior official at the White House has sparked excitement in the crypto community.

Gold for Bitcoin “Will Be Huge”

“Selling gold to buy Bitcoin would be huge,” said Dom Kwok, a former Investment Banking Analyst for Goldman Sachs, although the reassessment does not necessarily translate to selling gold. According to Kwok, such a move would also pave the way for the U.S. government to acquire other crypto assets down the line.

However, it is worth noting that Trump’s executive order to establish Bitcoin and altcoin holdings specified that no further altcoin acquisitions would be made. Only Bitcoin would see further acquisition, and even that would be done in budget-neutral ways.

However, there is skepticism about the U.S. using gold to buy Bitcoin. One community member, Stratlonesoldier, expressed that he would rather the U.S. spend taxpayer money to purchase Bitcoin than use the gold reserves to buy BTC.

China and Russia to Buy U.S. Gold to Back Stablecoins

Max Keiser, a Presidential Bitcoin advisor for El Salvador, also commented on the development. According to Keiser, Russia and China would buy any gold the U.S. sells to back a new gold-backed stablecoin.

Meanwhile, he noted that these two countries would also be adding BTC to their strategic reserves. Keiser argued that the potential buyback of gold from the U.S. would reduce the world’s reliance on USD hegemony.

“A gold-backed stablecoin and having the world’s biggest Bitcoin strategic reserve is the plan,” Keiser said.

Russia & China will buy any Gold the U.S. sells to back a new Gold stablecoin.
They’re adding BTC to their strategic reserves too.
goal; rid the world of USD hegemony.
A Gold stablecoin & the having the world’s biggest Bitcoin strategic reserve is the plan.
pic.twitter.com/UfpZIs7QQo

Meanwhile, President Trump seeks to make dollar-backed stablecoins even more dominant than they currently are.

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