The Federal Reserve has released an analysis exploring the economic impact of revaluing U.S. gold reserves, a move that could unlock over $750 billion for strategic funding without physical gold sales. The report specifically considers establishing a U.S. Bitcoin reserve among alternative financing options.
Currently, the Treasury values its 261.5 million ounces of gold at $42.22 per ounce—a rate fixed in 1973—resulting in an $11 billion book value. At prevailing market prices, these reserves would exceed $760 billion, revealing substantial unrealized value.
Revaluation could fund government initiatives without new taxes or bond issuance but carries significant inflation risks and potential political opposition. Treasury officials, including former Secretary Steven Mnuchin, confirmed no active plans exist to implement such accounting adjustments despite Fed analysis of its theoretical benefits.
The report cites historical precedents like the 1934 gold revaluation and 1951 Treasury Accord, warning of potential threats to central bank independence and macroeconomic stability. It further examines Bitcoin’s potential as a modern reserve asset in the context of diversifying funding strategies.
This analysis underscores escalating institutional consideration of Bitcoin in national fiscal policy frameworks while highlighting persistent tensions between innovative funding mechanisms and economic safeguards.