U.S. Strategic Bitcoin Reserve May Be Funded by Gold Sales, Proposes Standard Chartered
Standard Chartered’s Geoff Kendrick has suggested that the U.S. could finance its Strategic Bitcoin Reserve (SBR) without additional taxpayer burden by selling a portion of its gold reserves.
With the government holding around $760 billion in gold, he sees this as a potential budget-neutral approach to acquiring Bitcoin.
His comments come after President Trump’s executive order formally established the SBR, requiring all future Bitcoin purchases to be funded through budget-neutral methods. The order also mandates that all government-held Bitcoin be transferred to the reserve without any being sold.
Beyond selling gold, Kendrick outlined other possible strategies. He pointed to the Exchange Stabilization Fund (ESF), which has $39 billion in assets, as a potential resource for Bitcoin acquisitions, though repurposing it would represent a major policy shift. Another option involves integrating Senator Cynthia Lummis’s Bitcoin Act of 2024, which proposes an annual allocation of 200,000 BTC over five years, into the SBR’s funding framework.
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While Trump is expected to discuss the reserve at the White House Digital Assets Summit, Kendrick believes Treasury Secretary Scott Bessent will play a crucial role in shaping the acquisition strategy. He does not expect immediate policy implementation but anticipates that Bessent will develop a proposal in the future.
Kendrick also speculated that U.S. states and institutional investors, such as pension funds, could follow the federal government’s lead in Bitcoin adoption. He further noted that the establishment of the SBR could encourage other nations to pursue similar strategies, citing Abu Dhabi’s recent Bitcoin investment as an example of growing sovereign interest in digital assets.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
