Elon Musk’s D.O.G.E looks to update US gold reserves with Bitcoin after Fort Knox audit

Elon Musk’s Department of Government Efficiency (D.O.G.E) has its next mission: find out if Fort Knox actually holds the 4,580 tons of gold it claims to have. Elon was pulled into the debate today when an X user asked him to check if the US gold reserves still exist.

Elon responded, “Surely it’s reviewed at least every year.” The US Treasury claims that Fort Knox holds $425 billion worth of gold at market rates, but the last time anyone actually saw it was in 2017, when Treasury Secretary Steve Mnuchin visited.

Before that? 1974, when journalists and lawmakers were allowed inside after rumors of missing gold started spreading. The vault remains one of the most restricted locations on Earth, and no single person knows all the steps to open it.

Rand Paul demands answers, Lummis says Bitcoin is the solution

That single reply set off a political chain reaction, with Senator Rand Paul calling for an official audit and Senator Cynthia Lummis reiterating her favorite radical alternative—replace gold with Bitcoin.

Rand Paul, who has long supported government transparency, jumped in immediately after Elon’s post. “Nope. Let’s do it,” Paul wrote, making it clear he wants a full-scale audit of the reserves. His father, Ron Paul, pushed for gold audits for years, arguing that Americans have no proof the gold even exists, which is quite interesting, isn’t it?

Anyway, Lummis told Elon, “Bitcoin fixes this. A bitcoin reserve could be audited anytime 24/7 with a basic computer. It’s time to upgrade our reserves.” Elon responded to her recommendation with an emoji that symbolizes thinking, likely meaning he’s gonna think about it.

Bitcoin is transparent to a fault, unlike Fort Knox, which remains locked away with no public verification. Her proposal? Ditch gold, buy Bitcoin, and create a US strategic BTC reserve.

The US Mint claims Fort Knox holds 147.3 million ounces of gold, but here’s the problem—the government values it at $42.22 per ounce, which puts the official total at just $6.2 billion. That valuation is a joke—gold trades at nearly $2,900 per ounce, making the real value around $425 billion, as aforementioned.

Meanwhile, Lummis has already introduced the BITCOIN Act in the Senate, which lays out a plan for the US to create its first official Bitcoin reserve. According to the BICTOIN Act, the plan includes 1 million Bitcoin acquisition program, which would make up 5% of all BTC supply. Lummis also wants to secure Bitcoin vaults run by the US Treasury, designed with both physical and digital security measures. Funding will be pulled from existing Federal Reserve and Treasury funds, meaning no new taxpayer spending, according to the BITCOIN Act.

Lummis also wrote that there should be legal protections for Bitcoin self-custody, which will make sure Americans can hold their BTC without interference.

Via a post on X, Lummis called the plan a “Louisiana Purchase moment”, comparing it to the massive land acquisition that doubled US territory in 1803. The crypto-loving Senator didn’t expect it, but Trump endorsed the Bitcoin reserve idea.

His administration is of course officially crypto-friendly, and he’s openly considered creating a sovereign wealth fund backed by Bitcoin. His support could mean the difference between Congress approving the reserve or blocking it entirely.

The US government already holds 200,000 BTC, mostly from asset seizures handled by the US Marshals, and so Lummis wants that Bitcoin moved into the Treasury to kickstart the reserve. She’s also looking at converting old US gold certificates into BTC, which would tie Bitcoin directly into the federal financial system.

Meanwhile, states aren’t waiting for Washington. Pennsylvania, Texas, Wyoming, Arizona, Wisconsin, and many others are already exploring state-based Bitcoin reserves, with even more states expected to follow.

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