RFK Jr. Vows to Have Government Purchase $615 Billion in Bitcoin

Presidential candidate Robert F. Kennedy Jr. has made a bold pledge to push the U.S. government into acquiring Bitcoin (BTC) until its holdings match the nation’s substantial gold reserves. This plan, unveiled during a Wednesday interview, could significantly impact both the Bitcoin market and the broader cryptocurrency landscape.

Matching Bitcoin to Gold Reserves

The U.S. is the world's largest gold holder, with 8,134 tons valued at approximately $615 billion. Kennedy's proposal would see the government purchasing around 9.4 million BTC at current prices to match this gold value. This amount represents nearly 45% of the total Bitcoin supply, illustrating the scale of the initiative.

In his conversation with Custodia Bank CEO Caitlin Long, Kennedy lauded Bitcoin for its transparency and decentralization:

"Bitcoin is an honest currency. It’s a currency that’s based on proof of work. Everything’s on the ledger, it’s decentralized, and that’s what we need to do with democracy."

Kennedy's vision includes a new class of U.S. Treasury bills backed by a mix of hard currencies, including gold, silver, platinum, and Bitcoin. This backing would gradually increase from 1% in the first year to 100% over time.

Execution Timeline

Kennedy's plan outlines the acquisition of Bitcoin during his first term in office. This strategy aims to make the U.S. the world's largest BTC holder, surpassing current leaders like MicroStrategy and BlackRock, which own 226,331 BTC and 334,000 BTC, respectively.

Potential Market Impact

Kennedy’s proposal could lead to a significant price surge in Bitcoin, benefiting investors. The U.S. government's entry into the Bitcoin market would likely drive up demand and, consequently, BTC prices, possibly reducing the need to acquire the full 9 million BTC to meet the $615 billion target.

Policy Implications

Kennedy has also promised to eliminate capital gains taxes on Bitcoin, a move designed to keep the Bitcoin industry thriving within the U.S. He emphasized the importance of decentralization for democracy:

"If we want to save our democracy, we need to decentralize. Bitcoin is honest because there’s nobody in charge."

Robert F. Kennedy Jr.'s proposal to match the U.S. gold reserves with Bitcoin is a groundbreaking initiative that could reshape the financial landscape. By advocating for a significant government investment in Bitcoin and proposing supportive policies, Kennedy aims to position the U.S. as a dominant player in the cryptocurrency market, fostering greater adoption and integration of digital currencies in the national economy.