In the newest episode of the “Bitcoin Policy Hour,” a weekly podcast produced by the Bitcoin Policy Institute (BPI), key members of the organization explored how a singular policy move by the United States government could potentially drive the price of Bitcoin to unprecedented heights.
Executive Director Matthew Pines indicated that the global monetary system has remained mostly unchanged since 1973, when it transitioned away from a complete gold standard. “When reflecting on the monetary system we currently inhabit,” he noted, “it has existed since 1973, facing various crises and adaptations, yet its core structure has remained intact.” He emphasized that nations like China have emerged as significant industrial, military, and financial powers, challenging the stability of the longstanding dollar-based system as never before.
Head of Policy Zach Shapiro pointed out that worries regarding the diminishing trust in the US dollar and its reserve asset—the US Treasury security—have sparked discussions on alternatives. “If we’re considering other potential reserve assets,” he remarked, “gold is a clear candidate.” He noted that following the United States’ freezing of Russia’s Treasury reserves last year, “there’s been a growing sentiment among central banks worldwide that treasuries are becoming less of a neutral reserve asset… leading foreign governments to accumulate gold.” This trend could open up opportunities for Bitcoin to either replace or complement gold’s traditional role, particularly if the Trump administration decides to announce its first Bitcoin purchase.
When queried about the enduring policy proposal of “marking gold to market” and utilizing the proceeds to purchase Bitcoin, Shapiro elaborated that officially revaluing America’s gold price—currently set by law at about $42 per ounce, although global markets trade it above $3,200—could create what he referred to as a “significant surplus on Treasury’s balance sheet that we could then allocate to various purposes.” He indicated that directing those proceeds into Bitcoin would represent a one-off maneuver that adds nearly a trillion dollars to our balance sheet on paper. “But we must ask why this is being done and why now?”
Pines underscored the worldwide ramifications. “The gold certificates represent a smaller part of this broader strategic competitive landscape,” he shared, referencing ongoing trade tensions and technology restrictions between the US and China. “As leading powers of the world choose to escalate their confrontations, we will witness shifts across multiple domains: tariffs, export controls, currency systems, and, of course, monetary assets such as gold and Bitcoin.”
The dialogue then shifted to a White House executive order issued in March that established the Strategic Bitcoin Reserve and mandated agencies to perform a Bitcoin audit, with findings to be presented to the President’s Working Group on digital assets. Pines pointed out that “it explicitly stated that Bitcoin is digital gold, is in our strategic interest, and that we necessitate a strategic Bitcoin reserve,” although he remarked that “some outside the US government initially questioned whether that was genuine or merely a campaign promise.”
Shapiro confirmed that the White House indeed instructed each agency to identify which digital assets they possess through forfeiture or other means. “By law, they were given thirty days to complete this,” he clarified. “However, that report will be sent to the Secretary of the Treasury and the President’s Working Group, not necessarily made public.”
Despite the White House order also advocating for budget-neutral methods of acquiring new Bitcoin, no single agency has yet specified how they plan to proceed. Both Pines and Shapiro remarked that internal governmental discussions, as well as ambiguity regarding the meaning of “budget neutral,” may impede progress. “It can’t impact other budget line items,” explained Shapiro. “However, tariffs are not something that directly burdens the American taxpayer, and that’s one proposed method for raising funds for Bitcoin. Additionally, liquidating assets already listed on the government’s balance sheet is another approach that would also be budget neutral.”
If the Trump administration does indeed opt to purchase Bitcoin, the potential price implications could be substantial, according to the BPI. Shapiro stated: “If the United States announces a plan to acquire a million Bitcoin, that would send shockwaves through the global market. I believe the price of Bitcoin would soar, potentially reaching a million dollars per Bitcoin quite rapidly.”
However, the geopolitical ramifications could be even more significant, Shapiro added: “Then we must observe what kind of domino effects arise from that decision. What secondary consequences stem from Bitcoin being monetized at a pace quicker than many anticipate? The first would be the reactions from other nation-states… I suspect that Bitcoin gaining such strong momentum could negatively impact the long-term outlook for gold.”
At the time of this report, BTC was trading at $83,594.
