During the industry day of the annual Bitcoin conference in Nashville, Tennessee, Robert Kennedy Jr., an independent candidate for the US presidency, presented a bold financial policy plan that has the potential to revolutionize the United States’ monetary policy. His plan involves strategically acquiring Bitcoin to match the current US gold reserves, valued at $619 billion. Kennedy Jr. believes that this move will redefine monetary policy and strengthen fiscal discipline within the federal government.
In a roundtable discussion with Scott Melker and Caitlyn Long, CEO of Custodia Bank, Kennedy Jr. highlighted the alignment between his policies and the core principles of the Bitcoin community. He emphasized ideals such as personal freedom, property rights, and governmental integrity. Kennedy believes that Bitcoin is more than just a financial asset; it has the potential to enhance self-sovereignty and combat what he describes as a “destructive war economy” driven by fiat currency.
Kennedy Jr. drew a clear distinction between his consistent support for Bitcoin and the recent gestures of former President Donald Trump, who will also be speaking at the conference. Kennedy criticized Trump’s past skepticism towards Bitcoin and his controversial decision to consider appointing JPMorgan CEO Jamie Dimon as Treasury Secretary. He believes that these actions go against the idea of draining the political “swamp” and maintaining integrity in government.
Kennedy Jr. outlined a phased approach to integrating 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 suggested that new treasury issuances could begin with 1% backed by these hard assets, eventually scaling up to 100% over time. He expressed his willingness to add Bitcoin to the balance sheet and emphasized the importance of injecting discipline into the system.
One of the key components of Kennedy Jr.’s plan is the direct purchase of Bitcoin to achieve holdings equivalent to the US gold reserves. He believes that Bitcoin’s status as an honest and proof-of-work based currency makes it an ideal asset for the federal government to hold. However, based on current data, the US government would need to significantly increase its BTC holdings to match the value of its gold reserves.
To match the US official gold reserves with Bitcoin would require purchasing around 9.4 million BTC, representing a substantial portion of the total Bitcoin that will ever be mined. This ambitious acquisition plan poses both logistical and financial challenges for the US government. Currently, MicroStrategy and BlackRock are prominent holders of Bitcoin, but their holdings are significantly smaller compared to what Kennedy Jr. proposes for the federal government.
Robert Kennedy Jr.’s ambitious plan to transform US monetary policy with Bitcoin is a bold and innovative approach. While his vision aligns with the ideals of the Bitcoin community, the practicality and feasibility of implementing such a plan on a large scale remain to be seen. It will be interesting to see how Kennedy Jr.’s proposal unfolds and whether it garners support from policymakers and the public alike.
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