The Trump administration proposes using tariffs and gold swaps to establish a Bitcoin reserve, aiming to accumulate 1 million Bitcoin without taxpayer costs. This initiative is backed by the BITCOIN Act of 2025 and seeks to modernise the U.S. financial system through blockchain technology, positioning Bitcoin as a key national asset amidst rising institutional interest.
The Trump administration is investigating budget-neutral methods, such as tariffs and gold swaps, to establish a Bitcoin reserve for the U.S. This initiative, described by Bo Hines, Trump’s crypto advisor, aims to avoid tax implications while making the U.S. a prominent holder of Bitcoin amid increasing global digital asset interest.
Hines revealed in an interview that the administration is considering various unconventional funding sources, notably tariff revenue and Treasury gold revaluation, to avoid taxpayer burdens. This strategy supports the BITCOIN Act of 2025, a proposal from Senator Cynthia Lummis designed to facilitate the creation of a U.S. Strategic Bitcoin Reserve through alternative means. The administration promises that these initiatives will not financially impact taxpayers.
Aiming to accumulate 1 million Bitcoin within five years, the administration’s strategy includes potentially swapping gold reserves from Fort Knox for Bitcoin, as highlighted by Hines. Coordination among Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick is essential for establishing compliant Bitcoin acquisition methods, reflecting an ambitious vision for national digital assets.
The Trump administration is also leveraging blockchain technology to reform the outdated U.S. financial system, which suffers from inefficiencies including slow transactions and limited transparency. Hines asserts that blockchain could eradicate friction within the banking framework, enhancing transparency and efficiency for American citizens.
In summary, the Trump administration’s proactive approach to Bitcoin signifies an innovative new direction in national digital currency strategy. By employing tariffs, gold swaps, and collaborative planning, this plan seeks to integrate Bitcoin into America’s economic landscape, potentially reshaping the government’s engagement with decentralised finance systems.
