A proposal to tokenize or monitor US gold reserves in order to enhance their transparency via blockchain may not function in the same decentralized manner as Bitcoin, yet it could still provide benefits to the cryptocurrency, according to a research analyst.
Greg Cipolaro, the global head of research at New York Digital Investment Group (NYDIG), mentioned in a note dated March 21 that officials from the Trump administration, including Elon Musk, have suggested utilizing blockchain technology to trace US gold and government expenditures — a concept backed by crypto leaders.
“The thing about blockchains is they aren’t inherently intelligent,” Cipolaro stated. “They convey limited information. For instance, Bitcoin doesn’t know its own price or even what time it is.”
He explained that while the tokenization and monitoring of gold reserves on a blockchain could improve audit processes and transparency, it would still necessitate “trust and collaboration with central entities” in contrast to Bitcoin, which “was explicitly designed to eliminate the need for centralized organizations.”
Cipolaro further noted that ideas involving tokenization and blockchain tracking are not in competition with the crypto market but could raise awareness of it, ultimately benefiting Bitcoin.
This discussion arises amid calls for an independent audit of the United States’ gold reserves.
Last month, Republican Senator Rand Paul appeared to advocate for Musk’s federal cost-cutting initiative to examine the gold held by the US government in the Bullion Depository at Fort Knox, which the US Mint claims safeguards about half of the nation’s gold.
The Treasury conducts audits and releases monthly reports on gold holdings at Fort Knox and other locations in the US; however, both President Donald Trump and Musk have echoed long-standing conspiracy theories regarding the gold supply and questioned its current existence.
Source: Elon Musk
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Both have advocated for an independent audit of the Fort Knox vaults, which were last opened in 2017 for then-Treasury Secretary Steve Mnuchin to inspect the gold, with the prior occasion being in 1974 for a congressional delegation and some journalists.
The Mint’s website indicates that no significant amounts of gold have moved in or out of Fort Knox “for many years,” except for “very small quantities” utilized in purity tests during audits.
Scott Bessent, Trump’s former Treasury secretary, stated last month that Fort Knox undergoes annual audits and “all the gold is present and accounted for.”
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