Crypto industry plans to cash in with sales of crypto for US gold reserves

Question

This article asserts that the crypto industry is trying to sell crypto to the US government to create a strategic reserve of crypto, so big holders of crypto can cash out and realize their paper gains, without crashing the price of crypto. This would essentially drain billions from the federal government into the accounts of large crypto holders.

Answer 1

The claim that the crypto industry is influencing the federal government to spend federal funds on a cryptocurrency reserve is not wrong, but I could not find a credible source that repeated the claim that there is a possibility that the gold standard could be replaced by cryptocurrency. Some of the sources I found speculated that crypto might replace gold at some point in the distant future, but it seems like a very niche idea. The main claim of this article is backed up by the New York times and NPR. Most of the people who participate in cryptocurrency are wealthy, and the crypto industry is lobbying the federal government to purchase there product. Their plan to purchase large amounts of crypto with federal funds may cause a rise in inflation. This article uses a lot of emotionally charged language and exagerated its secondary claim. It provides some accurate information, but the way it is provided is misleading. 

 

NY times: https://www.nytimes.com/2025/01/16/technology/trump-bitcoin-stockpile.html

NPR:https://www.npr.org/2025/01/02/nx-s1-5244016/could-2025-be-another-game-changing-year-for-bitcoin-and-other-cryptocurrencies

Bill: https://www.congress.gov/bill/118th-congress/senate-bill/4912

Harvard: https://hbr.org/2021/11/case-study-should-we-embrace-crypto