MrDecentralize on Nostr: The Fed won’t hold #Bitcoin? Here’s why that doesn’t matter for the Strategic ...
The Fed won’t hold #Bitcoin? Here’s why that doesn’t matter for the Strategic Bitcoin Reserve.
When Fed Chair Jerome Powell said, “The Fed cannot legally own Bitcoin,” the headlines went wild. Panic set in. Does this mean the much-speculated Strategic Bitcoin Reserve is dead on arrival?
Not even close. In fact, the real plan was never about the Federal Reserve at all.
The Context
Let’s clear up a common misconception: the Federal Reserve isn’t part of the U.S. government. It’s an independent central banking system. When it comes to holding strategic reserves—whether that’s gold, foreign currencies, or potentially Bitcoin—that responsibility falls under the U.S. Treasury.
The Treasury Department already holds over 261 million ounces of gold at Fort Knox. If Bitcoin becomes the "digital gold" of the 21st century, it will likely be held in a similar fashion—directly by the U.S. Treasury, not the Fed.
So why all the noise? It’s a classic case of misunderstanding the roles of these institutions.
The Strategy
The U.S. government could still create a Strategic Bitcoin Reserve without involving the Fed. Here’s how:
Direct Treasury Custody: The U.S. Treasury already secures the nation’s most valuable reserves. Bitcoin could easily be added.
Alignment with Gold: Bitcoin could serve as a digital counterpart to physical gold, reinforcing the Treasury’s role as the ultimate store of value for the nation.
Future-Proofing Against Digital Currencies: As countries like El Salvador and China move aggressively into Bitcoin and CBDCs, the U.S. can’t afford to fall behind in securing its share of decentralized digital assets.
The Results
Geopolitical Leverage: A Strategic Bitcoin Reserve could counterbalance moves by BRICS nations stacking gold and other reserve assets.
Economic Hedge: Bitcoin’s decentralized nature offers a hedge against inflation and fiat volatility.
Global Leadership: Taking a proactive stance on Bitcoin would reinforce the U.S.’s leadership in the digital financial revolution.
The Takeaway
Jerome Powell’s statement changes nothing. The U.S. government doesn’t need the Federal Reserve to hold Bitcoin—it has the Treasury for that.
The lesson? Don’t mistake short-term headlines for long-term strategy. As the world pivots to digital assets, the U.S. has every incentive to lead the charge—whether that’s through gold, dollars, or digital gold.
What do you think—should the U.S. Treasury start stacking Bitcoin?
#Bitcoin #Leadership #Geopolitics #Innovation #Finance #StrategicReserves
When Fed Chair Jerome Powell said, “The Fed cannot legally own Bitcoin,” the headlines went wild. Panic set in. Does this mean the much-speculated Strategic Bitcoin Reserve is dead on arrival?
Not even close. In fact, the real plan was never about the Federal Reserve at all.
The Context
Let’s clear up a common misconception: the Federal Reserve isn’t part of the U.S. government. It’s an independent central banking system. When it comes to holding strategic reserves—whether that’s gold, foreign currencies, or potentially Bitcoin—that responsibility falls under the U.S. Treasury.
The Treasury Department already holds over 261 million ounces of gold at Fort Knox. If Bitcoin becomes the "digital gold" of the 21st century, it will likely be held in a similar fashion—directly by the U.S. Treasury, not the Fed.
So why all the noise? It’s a classic case of misunderstanding the roles of these institutions.
The Strategy
The U.S. government could still create a Strategic Bitcoin Reserve without involving the Fed. Here’s how:
Direct Treasury Custody: The U.S. Treasury already secures the nation’s most valuable reserves. Bitcoin could easily be added.
Alignment with Gold: Bitcoin could serve as a digital counterpart to physical gold, reinforcing the Treasury’s role as the ultimate store of value for the nation.
Future-Proofing Against Digital Currencies: As countries like El Salvador and China move aggressively into Bitcoin and CBDCs, the U.S. can’t afford to fall behind in securing its share of decentralized digital assets.
The Results
Geopolitical Leverage: A Strategic Bitcoin Reserve could counterbalance moves by BRICS nations stacking gold and other reserve assets.
Economic Hedge: Bitcoin’s decentralized nature offers a hedge against inflation and fiat volatility.
Global Leadership: Taking a proactive stance on Bitcoin would reinforce the U.S.’s leadership in the digital financial revolution.
The Takeaway
Jerome Powell’s statement changes nothing. The U.S. government doesn’t need the Federal Reserve to hold Bitcoin—it has the Treasury for that.
The lesson? Don’t mistake short-term headlines for long-term strategy. As the world pivots to digital assets, the U.S. has every incentive to lead the charge—whether that’s through gold, dollars, or digital gold.
What do you think—should the U.S. Treasury start stacking Bitcoin?
#Bitcoin #Leadership #Geopolitics #Innovation #Finance #StrategicReserves