Proposing the tokenization or monitoring of U.S. gold reserves for transparency on a blockchain may not function as seamlessly as Bitcoin does, according to a research analyst. However, it could still provide benefits to the cryptocurrency space.
Greg Cipolaro, the global head of research at a digital investment group, mentioned in a note dated March 21 that members of the Trump administration, along with figures like Elon Musk, have suggested utilizing a blockchain to keep track of U.S. gold and government expenditures—a notion that has garnered support from cryptocurrency leaders.
“One key point about blockchains is their limitations,” Cipolaro pointed out. “They aren’t particularly intelligent. For instance, Bitcoin lacks awareness of its own price or even the current time.”
He explained that while tokenizing or tracking gold reserves on a blockchain could enhance audits and transparency, it would still necessitate “trust and collaboration with central entities” unlike Bitcoin, which was explicitly designed to eliminate centralized control.
Cipolaro further noted that concepts involving tokenization and blockchain tracking shouldn’t be viewed as threats to the cryptocurrency market; rather, they could raise recognition of it, potentially benefiting Bitcoin in the long run.
This discussion is fueled by some advocating for an independent audit of the United States’ gold holdings.
Last month, Republican Senator Rand Paul appeared to urge Musk’s federal cost-cutting initiative to look into the U.S. government’s gold reserves located at the Bullion Depository in Fort Knox, which is reported to contain nearly half of the nation’s gold.
The Treasury routinely conducts audits and publishes data on gold reserves in Fort Knox and other locations throughout the U.S. each month. However, both President Trump and Musk have echoed long-standing conspiracy theories questioning the current status of the gold reserves.
Image: Elon Musk
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Both have advocated for an independent audit of Fort Knox, which was last opened in 2017 for viewing by Trump’s then-Treasury Secretary, and previously in 1974 for a congressional delegation and a press group.
The Mint’s website indicates that no gold has entered or exited Fort Knox “for many years,” other than “very small quantities” used to assess the purity of the gold during audits.
Trump’s Treasury secretary, Scott Bessent, stated last month that Fort Knox undergoes annual audits and “all the gold is present and accounted for.”
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