VanEck Proposes 6 Ways for the US to Buy Bitcoin Without Taxpayer Money

Recently, Donald Trump, the US President, signed an executive order to establish a strategic cryptocurrency reserve. At a time when the US is discussing various aspects of this revolutionary reserve plan, VanEck has proposed several budget-friendly strategies for the US government to expand its Bitcoin holdings without using taxpayer money. From revaluing gold to selling surplus cheese, these strategies could reshape how the US acquires BTC, Here is a breakdown of how these ideas could work! Dive in! 

Gold Revaluation: A Major Funding Option 

VanEck’s primary strategy is “gold revaluation.” The US holds a lot of gold but it is valued at a very low price. They could ask Congress to change the official price of that gold to a much higher, current market value. This revaluation creates a lot of extra paper money. They could use this extra money to buy Bitcoin without needing to increase taxes or borrow more money. 

Bitcoin-Backed Bonds: A New Way to Raise Funds 

The second prominent strategy suggested by VanEck is “Bitcoin-backed bonds.” The US government could create special bonds. They could sell these bonds to investors. A portion of the money raised from selling these bonds could be used to buy BTC, When the bonds mature, the government could repay investors either with BTC or with US dollars. 

Could the Federal Reserve Use Its Surplus for Bitcoin? 

The third strategy is to use “Fed Surplus.” The US Congress could allow the Federal Reserve to build a large surplus. Before 2015, the Fed was allowed to keep more surplus money. If Congress approves the surplus plan, the Fed could use the extra surplus money to buy Bitcoin for the proposed reserve.  

Bitcoin as a Global Reserve Asset? 

Special Drawing Rights are like an international reserve currency created by the IMF. Countries can hold them as part of their official reserves. The fourth strategy is to convince the IMF to add Bitcoin to the list of assets that make up SDRs. If BTC is included, it would become a globally recognised and accepted reserve asset.

Selling Surplus Government Assets – Even Cheese! 

The US government holds a large stockpile of surplus cheese. VanEck’s fifth strategy is to sell this surplus cheese stockpile to acquire BTC. What makes this plan attractive and simple is that it enables the administration to bypass the complexities of traditional government budgeting. It would not increase the federal budget deficit, as it is a sale of existing assets. It also addresses the issue of managing surplus government assets. 

Exchange Stabilisation Fund: A Hidden Bitcoin Solution?

The ESF is a fund controlled by the US Treasury. Its purpose is to stabilise the value of the US dollar and manage foreign exchange reserves. VanEck’s sixth strategy is that the US Treasury could use the EST’s reserves to purchase and hold Bitcoin. What makes the idea attractive is that it has a degree of flexibility because the ESF operates outside of the normal congressional budget process. 

In conclusion, VanEck’s proposals highlight multiple ways the US can acquire Bitcoin without taxpayer costs. While some methods require congressional approval, others – like selling surplus assets – could be implemented quickly.