Elon Musk’s Division of Authorities Effectivity (D.O.G.E) has its subsequent mission: discover out if Fort Knox truly holds the 4,580 tons of gold it claims to have. Elon was pulled into the controversy at the moment when an X consumer requested him to test if the US gold reserves nonetheless exist.
Elon responded, “Certainly it’s reviewed a minimum of yearly.” The US Treasury claims that Fort Knox holds $425 billion value of gold at market charges, however the final time anybody truly 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 crucial restricted places on Earth, and no single particular person 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 submit. “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 People don’t have any proof the gold even exists, which is sort of fascinating, isn’t it?
Anyway, Lummis advised Elon, “Bitcoin fixes this. A bitcoin reserve may very well be audited anytime 24/7 with a fundamental pc. It’s time to improve our reserves.” Elon responded to her suggestion with an emoji that symbolizes pondering, seemingly that means he’s gonna give it some thought.
Bitcoin is clear to a fault, in contrast to 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 complete at simply $6.2 billion. That valuation is a joke—gold trades at almost $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 keeping with 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 might be pulled from current Federal Reserve and Treasury funds, that 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 is able to be sure that People can maintain their BTC with out interference.
By way of a submit on X, Lummis known 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 concept.
His administration is in fact formally crypto-friendly, and he’s overtly thought of making a sovereign wealth fund backed by Bitcoin. His assist might imply the distinction between Congress approving the reserve or blocking it fully.
The US authorities already holds 200,000 BTC, principally 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 changing outdated US gold certificates into BTC, which might tie Bitcoin immediately into the federal monetary system.
In the meantime, states aren’t ready for Washington. Pennsylvania, Texas, Wyoming, Arizona, Wisconsin, and plenty of others are already exploring state-based Bitcoin reserves, with much more states anticipated to comply with.
