TLDR
- Robert F. Kennedy Jr. proposes the U.S. government buy Bitcoin to match its gold reserves.
- The U.S. gold reserves are worth approximately $615 billion.
- This would require purchasing about 9.4 million BTC at current prices.
- Kennedy calls Bitcoin an “honest currency” and supports its decentralized nature.
- He sees Bitcoin as a hedge against inflation and a way to restore individual liberty.
Independent presidential candidate Robert F. Kennedy Jr. has made waves in the cryptocurrency world with a bold proposal: he wants the U.S. government to buy Bitcoin until its holdings match the nation’s gold reserves.
This ambitious plan, if implemented, would represent a seismic shift in the country’s approach to digital assets and potentially reshape the global financial landscape.
During a recent interview with Custodia Bank CEO Caitlin Long, hosted by YouTuber Scott Melker, Kennedy outlined his vision for Bitcoin in the U.S. economy.
“Bitcoin is an honest currency,” Kennedy stated, praising its decentralized nature and transparency. “It’s a currency that’s based on proof of work. Everything’s on the ledger, it’s decentralized, and that’s what we need to do with democracy.”
The scale of Kennedy’s proposal is staggering. The United States currently holds the world’s largest gold reserves, valued at approximately $615 billion. To match this in Bitcoin would require purchasing about 9.4 million BTC at current prices, representing nearly 45% of the total Bitcoin that will ever be mined.
Kennedy’s plan goes beyond mere investment. He sees Bitcoin as a tool to combat inflation and restore individual liberty. “If we want to save our democracy, we need to decentralize,” Kennedy explained. He views Bitcoin as an “offramp to the inflationary highway,” suggesting it could protect the middle class from the erosion of their wealth through inflation.
The candidate’s Bitcoin strategy is part of a broader economic vision. Kennedy has previously announced plans to back both government currency and debt with a basket of hard currencies, including gold, silver, platinum, and Bitcoin. He proposes introducing a new class of U.S. Treasury bills anchored to this basket, starting at 1% in the first year and gradually increasing to 100% over time.
If elected, Kennedy aims to achieve this massive Bitcoin acquisition during his first four-year term in office. Such a move would make the United States the world’s largest Bitcoin holder by a significant margin, dwarfing current corporate holdings like those of MicroStrategy and BlackRock’s Bitcoin ETF.
Kennedy’s pro-cryptocurrency stance extends beyond this purchase plan. He has previously promised to eliminate capital gains taxes on Bitcoin, a move he believes would incentivize the Bitcoin industry to remain in the United States.
The timing of Kennedy’s proposal is notable, coming amid rumors that former President Donald Trump, another presidential candidate, may announce plans for a U.S. Bitcoin reserve at the ongoing Bitcoin Conference 2024.
Both Kennedy and Trump are scheduled to speak at this event, highlighting the growing importance of cryptocurrency policy in the upcoming election.
As the 2024 presidential race heats up, cryptocurrency policy is emerging as a key issue. Whether or not Kennedy’s ambitious plan comes to fruition, it has certainly sparked a conversation about the future of Bitcoin in the U.S. economy and its potential as a tool for economic sovereignty.
