Proposal for Expanding Bitcoin Reserves
In a surprising proposal, Adam Livingston, the author of The Bitcoin Age and The Great Harvest, has suggested that the U.S. government could expand its Bitcoin reserves using a significant part of the surplus generated from trade tariffs.
Current Tariff Surplus
As of July, U.S. customs duties have amassed to an impressive $135.7 billion, double the amount collected by the same time last year, with approximately $70 billion currently unallocated. This surplus, according to Livingston, is a prime source since it isn’t earmarked for programs like Medicare or other expenses.
Acquisition Strategy
Livingston proposes that the government direct a fraction of these tariff surpluses towards acquiring Bitcoin, advising that the purchased cryptocurrency should remain securely in cold storage, untouched by trading, lending, or staking activities. This aligns with a prior executive order from former President Trump, which mandates that any additional Bitcoin acquired must be through budget-neutral channels.
Government’s Stance on Bitcoin
Interestingly, U.S. Treasury Secretary Scott Bessent‘s recent comments have created some confusion regarding the government’s stance on Bitcoin acquisitions. Initially stating that no new Bitcoin purchases for the strategic reserve would occur, Bessent later indicated that discussions are ongoing to explore budget-neutral options for increasing the government’s cryptocurrency holdings.
Potential Strategies
This could involve potential strategies such as reevaluating the Treasury’s gold assets, which are currently undervalued compared to market prices, or reallocating existing reserve assets, including selling part of the strategic petroleum reserve to fund Bitcoin investments. Livingston’s proposal opens new avenues for how the federal government might strategically enhance its digital asset portfolio amidst evolving financial landscapes.
