The US White House plans to use its gold reserves to buy Bitcoin

The proposal is to continue with Bitcoin

A high-level proposal being discussed within the Trump administration would allow the U.S. Treasury Department to sell a portion of the nation's official gold reserves to fund large-scale Bitcoin purchases for the Strategic Bitcoin Reserve (SBR), according to a detailed report published by Bloomberg on February 1, 2026, citing multiple administration officials and people familiar with internal discussions.

This plan — still in its early stages of discussion and not yet formally presented to Congress — would represent the most dramatic shift in U.S. reserve policy since the end of the gold standard in 1971. If implemented, it would directly convert a portion of the U.S. gold reserves ( worth approximately $700-720 billion at current spot prices of around $2,720-2,750 per ounce ) into cash to purchase BTC.

Treasury Secretary Scott Bessent reportedly supports the idea in principle, seeing it as a way to “ modernize the national balance sheet ” and position the United States as the world’s leading holder of digital reserve assets. However, senior Federal Reserve officials and some Republican lawmakers have expressed concerns about the risks of gold liquidation and market volatility.

Significant regional impact

Even reallocating a limited amount of gold to Bitcoin would send a strong message. It would indicate the United States' willingness to recognize digital assets as strategic reserves, not merely managed investment products. Such a move could accelerate the legalization of Bitcoin globally and put pressure on other nations to reassess the composition of their own reserves. In effect, it would elevate Bitcoin from a market asset to a geopolitical instrument.

The market may interpret this confirmation as a positive structural signal for Bitcoin, given the size and credibility of sovereign buyers. Conversely, the gold market could become volatile if investors reassess long-term official demand.

Legal, political, and operational barriers

This proposal faces significant obstacles. U.S. gold reserves are governed by law, and any reallocation would require congressional approval, agency coordination, and close public oversight. Politically, exchanging a centuries-old reserve asset for a volatile digital currency would be controversial. Operationally, the standards for holding, securing, and accounting for state-held Bitcoin would need to meet national risk thresholds.

Critics point to Bitcoin's volatility, history of declines, and regulatory uncertainty. Unlike gold, Bitcoin has a relatively short history and remains sensitive to structural market shocks. An ill-timed allocation could expose public reserves to media risks and negative political backlash.

Disclaimer: The information presented in this article is the author's personal opinion in the field of cryptocurrency. This is not financial or investment advice. All investment decisions should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in this article do not represent the official stance of the platform. We recommend that readers conduct their own research and consult with experts before making any investment decisions.

Compiled and analyzed by HCCVenture

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