During the recent industry day of the annual Bitcoin conference in Nashville, Tennessee, Robert Kennedy Jr., an independent candidate for the US presidency, revealed an ambitious financial policy plan that could potentially transform the United States into the world’s largest holder of Bitcoin. His strategy involves strategic acquisition of Bitcoin, valued at $619 billion, to match the current US gold reserves. This move is aimed at redefining monetary policy and enhancing fiscal discipline within the federal government.
Kennedy Jr. emphasized the alignment between his policies and the Bitcoin community’s ideals of personal freedom, property rights, and governmental integrity. He sees Bitcoin as more than just a financial asset, but as a tool to enhance self-sovereignty and counteract what he describes as a “destructive war economy” driven by fiat currency. In his view, Bitcoin offers a way to restore integrity to government, preserve personal freedoms, and shield the middle class from inflation.
Kennedy Jr. drew a clear distinction between his consistent advocacy for Bitcoin and the recent supportive gestures from former President Donald Trump, who is scheduled to speak at the conference. Kennedy highlighted Trump’s previous skepticism towards Bitcoin and his controversial decision to potentially appoint JPMorgan CEO Jamie Dimon as Treasury Secretary, which goes against the ethos of draining the political “swamp.” He emphasized the need for caution in interpreting Trump’s newfound enthusiasm for Bitcoin.
Kennedy Jr. detailed his plan to gradually incorporate Bitcoin into the US treasury. He proposed starting with the issuance of treasury bills backed by a basket of hard currencies, including platinum and gold. Kennedy outlined a phased approach that would begin with 1% of new treasury issuances backed by hard assets, eventually scaling up to 100% over time. This approach, according to Kennedy, would inject discipline into the system and pave the way for full integration of Bitcoin into the treasury.
Direct Purchases of Bitcoin
Kennedy Jr.’s strategy involves direct purchases of Bitcoin to achieve holdings equivalent to the US gold reserves. He expressed his intention to have the federal government buy Bitcoin gradually over his term in office, with the ultimate goal of attaining holdings equivalent to the US gold reserves. This, in Kennedy’s view, is a step towards embracing an honest currency based on proof of work.
According to data by Arkham, the US government currently holds 213,239 BTC worth $14.3 billion confiscated through law enforcement. Even if Kennedy were to transfer all of these into a strategic reserve, the US would still need to purchase a significant amount of BTC at current prices to match the value of its gold reserves. To achieve this parity, the US would need to acquire approximately 9.4 million BTC, representing nearly 45% of the total 21 million BTC that will ever be mined.
With Bitcoin trading at $66,976 at the time of writing, this acquisition would require a substantial investment on the part of the US government. For perspective, MicroStrategy, the largest corporate holder of Bitcoin, owns 226,331 BTC, while BlackRock, the largest spot Bitcoin ETF manager, controls 334,000 BTC.
Robert Kennedy Jr.’s proposal to make the US the largest holder of Bitcoin presents both opportunities and challenges for the country’s financial landscape. While his vision for integrating Bitcoin into the US treasury reflects a forward-thinking approach to monetary policy, the practical implications of such a massive acquisition of Bitcoin raise questions about feasibility and implementation. It remains to be seen how Kennedy’s plan will resonate with policymakers and the broader public in the context of the evolving crypto landscape.
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