US government set to reveal Bitcoin and crypto holdings on April 5

Source Cryptopolitan

The US Department of the Treasury and other federal departments will publicly disclose their cryptocurrency holdings on April 5, following President Trump’s directives on March 6.

The order entails the establishment of the Strategic Bitcoin Reserve and a Digital Asset Stockpile with the goal of considering Bitcoin a key national asset. The upcoming disclosure will reveal what the government owns at the moment and its plan regarding digital assets in the future.

The US government is considering holding Bitcoin long-term

Under the executive order signed by Trump, federal agencies were asked to submit their balance sheets on cryptocurrencies within one month. The Treasury Secretary is required to create two new executive offices to oversee the government’s digital properties.

This initiative aims to make the U.S. Treasury hold Bitcoin in the same way it holds gold, having a vault-like “digital Fort Knox.” The Strategic Bitcoin Reserve is for Bitcoin acquired from the seizure of properties related to criminal and civil litigation, and the government has agreed not to dispose of these assets.

According to BTC Inc. CEO David Bailey, the price volatility in the last couple of months is due to the audit results. However, this decline came about even while the Bitcoin Reserve was established.

Data from Arkham Intelligence shows that the US Government currently possesses 198,012 Bitcoin, worth about $16 billion.  The government sold around 50% of the 400,000 mined over the last decade, garnering $366 million. These assets would now fetch a valuation exceeding $17 billion.

Proposed $200 billion ‘₿ Bonds’ could save U.S. taxpayers billions

Further elevating the strategic shift towards cryptocurrency even higher, the Bitcoin Policy Institute presented the government with a proposal to purchase Bitcoin without using the money from the taxpayers. Accordingly, the Institute advises the issuing of “$2 trillion worth of Bitcoin-Enhanced Treasury Bonds” referred to as “₿ Bonds”.

These ₿ Bonds would allocate 90% of the proceeds to traditional government funding while using the remaining 10% to purchase Bitcoin. They would have a relatively lower 1% interest rate which is much lower than the current 10-year treasury yield that averages 4.5%.

Investors, on the other hand, receive exposure to Bitcoin’s returns through structured payoff at maturity. The bond structure provides full repayment while adding even more Bitcoin-based returns into the mix to entice investors with a blend of security and crypto-related income streams.

Financial modeling by the Institute indicates that the changes will save taxpayers huge sums of money. Despite having an unchanging Bitcoin price for the past 10 years, the government could still save around $354 billion even if it spends $200 billion to buy Bitcoin. If Bitcoin follows historical performance, large parts of the national debt could be offset by 2045.

Furthermore, ₿ Bonds’ costs include tax-exempting status for interest and Bitcoin profits, which enhances their utility as consumer-welfare stores of value. Over 132 million households in the United States are expected to take part, at an average of $3,025 per household. Institutional and international investors would absorb 80% of the bonds, while U.S. households would take 20%.

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