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HomeNewsBitcoin: Congress Discusses USD Pegging to Gold - Can it Drive BTC...

Bitcoin: Congress Discusses USD Pegging to Gold – Can it Drive BTC Price to $30,000?

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  • Three U.S. congressmen introduce the “Gold Standard” bill to stabilize the value of the dollar by pegging it to gold.
  • The bill requires the Federal Reserve and U.S. Treasury to disclose all gold holdings and gold transactions and then re-peg the Federal Reserve’s dollar currency note to a fixed weight of gold.

U.S. congressmen, Alex Mooney, Andy Biggs, and Paul Gosar, have proposed the “Gold Standard” bill to stabilize the value of the dollar. The bill’s objective is to re-peg the volatile dollar to a fixed weight of gold bullion.

The bill requires the U.S. Treasury and Federal Reserve to publicly disclose all gold holdings and transactions within two years. Following this, the Federal Reserve’s dollar currency note will be officially re-pegged to a fixed weight of gold at its current market price. In this scenario, the Federal Reserve notes will become redeemable and exchangeable with gold at the new price.

The U.S. Treasury and its gold reserves will act as guarantors of the Federal Reserve banks. The bill aims to counter the continuous depreciation of the dollar, which has lost more than 40% of its purchasing power since 2000 and 97% of its purchasing power since the introduction of the Federal Reserve Act in 1913.

The Gold Standard bill intends to protect against Washington’s “irresponsible spending habits” by making prices determined by economics rather than bureaucrats’ instincts. Mooney noted that the bill would safeguard against creating money out of thin air and the Federal Reserve’s reckless spending habits.

If the bill becomes law, it would offer protection against the continuous depreciation of the dollar and provide economic stability. However, the bill has just been introduced and must be green-lit by the House, Senate, and President to be enforced.

Overall, the proposed bill is an attempt to counter the declining value of the dollar and provide economic stability. The proposal has received mixed reactions from various experts, with some pointing out that linking the dollar to gold could lead to deflation and economic instability.

Others, however, believe that the gold standard could offer a more stable monetary policy and counteract inflationary tendencies. The future of the “Gold Standard” bill and its impact on the U.S. economy remains to be seen.

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Godfrey Benjamin
Godfrey Benjamin
Godfrey Benjamin is an experienced crypto journalist whose primary goal is to educate everyone about the prospects of Web 3.0. His love for crypto was sparked during his time as a former banker when he recognized the clear advantages of decentralized money over traditional payments. Business Email: info@ethnews.com Phone: +49 160 92211628
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