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ToggleThe US plans to establish a Bit reserve, emphasizing "no increase in taxpayer burden"
As the US government officially incorporates Bit (BTC) into its strategic reserve asset system, the Treasury and Commerce Departments are actively seeking "budget-neutral" ways to accumulate BTC, ensuring that this policy will not incur additional costs for taxpayers.
This means that the US government cannot purchase Bit through increased tax revenue or new budgets, but must use existing assets, financial instruments, mining infrastructure, and international trade and economic mechanisms to acquire BTC.
Here are 10 possible strategies, covering asset conversion, financial innovation, government mining, and international cooperation, detailing how the United States can "freely" establish a national-level Bit reserve.
I. Government Asset Conversion: Monetize Existing Wealth for BTC
1. Use the Strategic Petroleum Reserve (SPR) to Acquire BTC
The U.S. has the world's largest Strategic Petroleum Reserve (SPR), totaling about 568 million barrels. When oil prices are high, the government can sell a portion of the oil, use the U.S. dollar proceeds to purchase BTC, without impacting the national budget. This method will not impose additional burdens on taxpayers, and the SPR itself is an existing government asset. However, if the sale of SPR quantities is too large, it may affect the international oil market and U.S. energy policy.
2. Sell Gold Reserves to Acquire BTC
The U.S. Treasury holds about 8,100 tons of gold. If a portion of the gold is sold and the proceeds converted to BTC, it can realize the reallocation of the country's reserve assets. Bit and gold have similar hedging properties in the investment market, so this conversion has a certain rationality. However, gold has long been an important pillar of the U.S. dollar credit system, and its sale may cause market unrest and even affect the global status of the U.S. dollar.
3. Auction Forfeited Assets and Convert Proceeds to BTC
The U.S. government regularly auctions off assets forfeited from criminal cases, sanctions violations, and corporate fines, including BTC. If the policy changes, the government can directly use the auction proceeds to purchase BTC, rather than depositing them into the general federal fund. This strategy has precedents, such as the U.S. Marshals Service auctioning off confiscated Bit in the past. The challenge is that the government needs to adjust its financial management policies to earmark auction proceeds specifically for the BTC reserve.
II. Government Financial Innovation: Leveraging Debt and Fines to Acquire BTC
4. Issue "Bit-Backed Treasury Bonds"
The U.S. Treasury can issue Treasury bonds linked to BTC, attracting investors to purchase them, and use the raised funds to hold BTC. This method can raise funds through the bond market to purchase BTC without impacting the federal budget, and can also attract institutional investors to participate, promoting the financialization and stability of BTC. However, whether the market will accept Bit-backed Treasury bonds remains uncertain, and investor confidence will determine its effectiveness.
5. Require Enterprises and Citizens to Pay Fines or Legal Settlements in BTC
When enterprises violate U.S. laws (such as export controls, financial fraud), they usually need to pay fines or settlements. The government can allow BTC payments for such payments, and directly deposit them into the strategic Bit reserve. This is an additional source of revenue without impacting the federal budget. However, enterprises may resist BTC payments and still prefer to use fiat currency, and the implementation of the policy will require time and market adaptation.
6. Federal Reserve (Fed) Participation in BTC Reserve Management
The Federal Reserve has trillions of dollars in assets and can consider converting a portion of its foreign exchange reserves or asset allocations to BTC, to be managed by the Treasury Department. This strategy does not involve the federal budget and will not affect the taxpayer burden. If the Federal Reserve formally incorporates BTC as a reserve asset, it will have a significant impact on the global market. However, this may raise issues of international monetary policy and U.S. dollar credibility, and the U.S. government needs to carefully evaluate.
III. Government Mining: Direct Production of BTC
7. Government Utilizes Energy Resources to Mine BTC
The U.S. has abundant hydropower, nuclear power, and other low-cost energy resources. The government can leverage idle power and supercomputing resources to engage in BTC mining. The mining cost is relatively low, and it can stably acquire BTC. The U.S. Department of Energy (DOE) and national laboratories (such as Oak Ridge National Lab) already have high-performance computing equipment that can be invested in BTC mining. However, this may raise environmental and energy use controversies, especially in the context of global carbon neutrality, and the government needs to carefully manage the carbon footprint.
8. Allow Enterprises to Mine BTC on Government-Controlled Land and Collect BTC as Rent
The U.S. government owns 28% of the country's land, and can allow enterprises to set up BTC mining facilities on military bases, federal lands, and Indian reservations, and pay rent or royalties in BTC. This method does not require additional government investment, is fully market-oriented, and can provide a stable source of income for the BTC reserve plan. However, this policy may face challenges from environmental and land use issues, and the government needs to engage in extensive consultations with local communities.
IV. International Strategy and Economic Cooperation
9. Promote the Use of BTC for International Trade Settlement
The U.S. government can negotiate with trade partners to allow BTC to be used for payment in international trade of energy, military equipment, etc., thereby accumulating BTC reserves. If the U.S. can introduce BTC into the international trade settlement system, it will enhance the position of Bit in the global financial market. However, this may face resistance from international regulatory agencies, and the reactions of other major economies will also affect the policy's effectiveness.
10. Acquire BTC Through Foreign Aid Programs
The U.S. provides technical and economic assistance to developing countries every year, and can require a portion of the aid payments to be made in BTC, directly accumulating BTC reserves. This will be an innovative approach that allows the U.S. to expand its Bit holdings without additional budget increases. However, the willingness of recipient countries to accept BTC remains uncertain, and the government needs to negotiate with international partners to ensure the feasibility of the program.
Can the U.S. Government "Freely" Accumulate BTC?
Through asset conversion, financial instruments, mining, and international trade, the U.S. government can indeed gradually establish a strategic Bit reserve without increasing the taxpayer burden. As these strategies are implemented, the U.S. will further consolidate the position of BTC in the global financial system, and may even trigger other countries to emulate, initiating a global "national-level Bit reserve race".
Risk Disclaimer
Cryptocurrency investments are highly risky, and their prices may fluctuate dramatically, potentially resulting in the loss of your entire principal. Please carefully evaluate the risks.
