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Opinion: If the U.S. Treasury reevaluates the value of gold, the Federal Reserve will fall into chaos

Opinion: If the U.S. Treasury reevaluates the value of gold, the Federal Reserve will fall into chaos

Bitget2025/02/19 12:33

Odaily Planet Daily reports that Wrightson ICAP suggests, under the debt ceiling limit, revaluing U.S. gold reserves may seem tempting but it would have profound effects on the financial system, increase liquidity and extend the Federal Reserve's balance sheet reduction time. The core idea is that the government should revalue gold reserves from $42.22 per ounce (the legacy price of Bretton Woods System) to market prices. Wrightson ICAP economist Lou Crandall states that there is little chance of reassessing Treasury's holdings of gold; any gains would be minimal and public relations response could be chaotic.

Previous news reported Hong Kong considering promoting tokenization of gold while debates over auditing U.S. gold reserves sparked controversy in crypto community supporting Bitcoin as a reserve asset.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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