The upcoming US Gold Standard Restoration Act & Bitcoin

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Three US Congressmen introduced the US Gold Standard Restoration Act, restructuring the US dollar peg system. The USD is supposed to be pegged to gold.

Boosting the US dollar from its worst position in 80 years, the Gold Standard Bill was introduced. Can this help Bitcoin? Three members of Congress, Andy Biggs, Alex Mooney and Paul Gosar, introduced a bill on April 4, 2023, introducing the Golden Standard Restoration Act (HR 2435) which proposes that the USD be pegged to a fixed weight of gold .

JUST IN: Three US Congressmen introduce the ‘Gold Standard Bill’ to stabilize the value of the US dollar.

— Watcher.Guru (@WatcherGuru) April 5, 2023 The Gold Standard Restoration Act – Explained

The official document noted that the US dollar had lost its purchasing power by almost 40% since 2000 and by about 97% since the introduction of the Federal Reserve Act in 1913. The bill seeks to effect the convertibility of the greenback with a fixed amount of gold. This scenario would allow the US gold reserve and the US Treasury to back the Federal Reserve banks as guarantors.

If the bill passes, 24 months will be given to the Federal Reserve and the US Treasury to publicly disclose all gold holdings and transactions. The USD would be officially pegged to a fixed weight of gold at its current market price.

This monetary system places a standard economic unit on the same pedestal as a fixed amount of gold. This was actually the international monetary system from the 1870s through the 1920s until 1932, when the Nixon administration ended this practice.

https://t.co/wGOb0ctMaO

The graph may need this data. The entire Lindbergh ransom of $$1932 was in US gold certificates. Much of it was never recovered. Serial numbers are known.

— Phil Hannum (@PhilHannum) April 8, 2023

With this bill, US lawmakers are attempting to recreate the era of the gold standard. Moreover, if the results are good, many countries could adopt the mechanism.

The global economy is struggling against a backdrop of geopolitical tensions and growing constraints on climate resources. Inflation has spiked in several countries since COVID-19. The land of the free tried to cross swords with the situation by printing more cash, thereby greatly reducing the purchasing power of dollars.

Likely impact on Bitcoin

The recent status of the US economy has caused former President Donald Trump to declare that US fiat currency may lose its status as the world’s reserve currency. The statement attracted a lot of unwanted attention around the world. However, many believe that this Gold Standard Restoration Act is a better system than the current system.

Bitcoin is expected to benefit from this change. Primarily, the bill would prevent irresponsible spending and the government would not be able to print money out of thin air.

If the bill goes further, economies would govern prices, not bureaucrats, and American families, businesses and the American economy would not have to rely solely on the mercy of the Federal Reserve. The much-needed stability would be in the system if the bill could deliver on its promises.

Microstrategys Michael Saylor said that although this system appears to be a solution at the moment, he argues that Bitcoin, with its technological advancements and inherent characteristics, could also serve as a global reserve currency.

For now, the gold standard is not having a positive impact on the price of Bitcoin, but it certainly has the potential to fuel the rally in a long-term scenario.

Andrew is a blockchain developer who developed his interest in cryptocurrencies during his post-grad studies. He is a fine observer of details and shares his passion for writing while being a developer. His backend blockchain knowledge helps him bring a unique perspective to his writing

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