Since adopting the Strategic Bitcoin Reserve (SBR) as official government policy, its overseers have been scrambling for ways to sustainably enhance and manage it. Bo Hines, appointed Executive Director on Digital Assets by President Donald Trump has proposed using gold certificates as one potential budget-conscious solution for managing the reserve.
Hines has presented several inventive, cost-cutting strategies to increase Bitcoin holdings on a budget, with gold certificates as a top option. He notes how these certificates trade at lower values than physical gold, which gives US government agencies an opportunity to profit off this difference when purchasing Bitcoins.
Government Seeks ‘Budget-Neutral’ Methods to Support SBR
President Trump’s announcement of a crypto reserve was met with mixed responses. While its creation had long been anticipated, its initial decision not to acquire Bitcoin directly raised eyebrows; rather administrators are instructed to utilize existing digital assets or explore “budget neutral” acquisition methods instead.
Hines elaborates a unique, cost-efficient strategy for increasing Bitcoin reserves through gold certificates in his appearance on the Crypto in America podcast. He anticipates gains due to their lower price relative to actual gold; this aligns with Senator Cynthia Lummis’ Lummis Act which underscores their potential benefits.
Discrepancy in Gold Certificate and Bullion Pricing
The Federal Reserve Bank of St. Louis notes that gold certificates are valued at a statutory rate of $42.22 per troy ounce compared to their spot price of over $3k an ounce. In response, The Lummis Bitcoin Act 2025 advocates for moving these gold certificates over to Treasury Secretary’s office so new certificates could be issued at their current market value, thus opening up avenues for Bitcoin purchases in future purchases.
Hines welcomes new ideas on how to expand and manage the Bitcoin reserve, with proposals not placing additional financial strain on taxpayers. This principle underlies President Trump’s crypto executive order signed March 6th; which mandates cooperation across agencies in gathering recommendations.
With approximately 207,000 Bitcoins taken as the result of legal proceedings, the US holds one of the world’s largest reserves of digital currencies – making them a keystone asset in digital currency landscape.
