A White House senior official has revealed that the U.S government plans to use gold reserves on Bitcoin purchases.

The Bitcoin Act of 2025 proposed by Senator Cynthia Lummis aims to acquire 1 million BTC. This planned acquisition would seize up to 5% of Bitcoin's total supply over five years.

A White House senior official has revealed that the U.S. government is planning to use its gold reserves to purchase Bitcoin (BTC), as revealed by the Executive Director of the President’s Council of Advisers on Digital Assets, Bo Hines.

Highlighting the proposal put forth by Senator Cynthia Lummis, in her Bitcoin Act of 2025, Hines emphasized the feasibility of the plan. The proposal aims to acquire 1 million BTC, amounting to 5% of the cryptocurrency’s total supply over five years.

The program would begin with an initial capital injection of $400 billion, and subsequent yearly installments of $200 billion, funded through the sale of Federal Reserve gold certificates, designed to boost U.S. BTC reserves.

During an interview with Blockworks, Hines clarified that the value generated by U.S. gold holdings would be sufficient to cover the proposed BTC acquisition. This plan would not affect federal budget allocations.

“We wouldn’t be putting any strain on the federal budget. We’re simply converting one valuable asset, of which the U.S. has the world’s largest reserve, into another valuable asset,” Hines stated.

Hines further added that President Donald Trump is evaluating multiple strategies, and will select and implement the most suitable idea for introducing legislation to Congress this year.

This proposed action will have significant implications for the global market for BTC. If approved, the Bitcoin Act of 2025 would establish the United States as a major player in the crypto space.

The potential acquisition could transform BTC’s market price structure and position the United States a leader in digital assets.

President Trump has expressed his commitment to transforming the United States into a global leader in Bitcoin. Trump recently reiterated his initiative to make America the global center for cryptocurrency.

The Trump administration aims to build a financial structure which helps American citizens build assets rather than decrease their wealth.

The use of U.S. gold reserves to purchase BTC marks a shift in how the country is engaging with digital currencies. It showcases the increased government interest in digital currencies as part of its broader financial strategy.

Moreover, the participation of the Federal Reserve highlights the U.S. government’s serious consideration of cryptocurrency as a potential long-term asset.

The future of a Bitcoin-backed economy has been a topic of discussion for some time now, and it appears to be gaining momentum despite the current macroeconomic challenges.

The integration of gold reserves with BTC acquisition could transform how national economies perceive digital currencies. The implementation of this policy would likely lead to a wider adoption of cryptocurrency at the national levels.