The Bitcoin Policy Institute (BPI) has proposed an unconventional financial strategy for the United States—selling off its 1.4 billion-pound Strategic Cheese Reserve to fund Bitcoin acquisitions.
In a March 7 post on X, the BPI argued that liquidating the nation’s cheese stockpile, valued at approximately $3.4 billion, would provide a budget-neutral method to increase federal Bitcoin holdings without imposing additional costs on taxpayers.
VanEck’s head of research, Mathew Sigel, echoed this sentiment, questioning the necessity of maintaining a vast cheese reserve. He suggested that Bitcoin, as a neutral asset with a fixed supply, could serve as a better financial instrument for government reserves than perishable dairy products. The US cheese stockpile, originally established to stabilize dairy prices and support farmers, now faces scrutiny as policymakers explore alternative asset strategies.
The proposal follows President Donald Trump’s recent announcement of the Strategic Bitcoin Reserve initiative, which aims to retain the country’s existing Bitcoin holdings while identifying new, cost-neutral methods for expanding them. White House AI and Crypto Czar David Sacks reinforced this vision, describing the reserve as a “digital Fort Knox” designed to preserve Bitcoin as a long-term store of value.
Beyond cheese liquidation, BPI Executive Director Matthew Pines suggested additional ways to grow the US Bitcoin reserve, including reallocating surplus US dollars, gold reserves, foreign exchange holdings, and revenue from privatizing Government-Sponsored Enterprises (GSEs). While the administration has not formally responded to the cheese-for-Bitcoin proposal, the conversation reflects a growing debate over the role of digital assets in federal financial strategy.
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