NYDIG

A research analyst says that while a plan to tokenize and track US gold reserves in order to make them transparent via a blockchain will not work the same way Bitcoin works, it could still help Bitcoin.

Greg Cipolaro said that in an article published on March 21, NYDIG’s global head for research, Greg Cipolaro. note that Trump administration officials, including Elon Musk, have floated using a blockchain to track US gold and government spending — an idea supported by crypto executives.

“Here’s the thing about blockchains. They’re not very smart,” Cipolaro said. “They’re limited in the information they convey. For example, Bitcoin has no idea what the price of Bitcoin is or even the current time.”

The tokenization of gold reserves or their tracking on the blockchain would help in audits, but still be a challenge. “rely on trust and coordination with central entities” Bitcoins are a great alternative to Bitcoin “was designed to explicitly remove centralized entities.”

Cipolaro also added that the tokenization of blockchain and tracking ideas won’t be competitive with the cryptocurrency market, but could increase awareness. “could ultimately benefit Bitcoin.”

The move comes as some call for an independent audit to the United States gold reserves.

The Republican senator Rand Paul, who last month criticized Musk’s Federal Cost-Cutting Project to investigate The US Government’s gold stash Fort Knox Bullion Depository, US Mint says Around half the gold in Ghana is held by this company. 

Treasury audits, publishes reports However, President Donald Trump as well Musk has repeated old conspiracy theories regarding the gold. and questioned If you still have it all, then yes.

Related: Who’s running in Trump’s race to make US a ‘Bitcoin superpower?’ 

Both have called for an audit to be conducted by an independent auditor of Fort Knox. In 2017, Steve Mnuchin – then the Treasury Secretary under Trump – was allowed to see gold in Fort Knox. Before that, in 1974, a congress delegation and group of journalists were permitted to visit.

Fort Knox has not received any gold, according to the Mint’s site. “for many years,” Except “very small quantities” Used to check the purity of gold during audits. 

Scott Bessent is Trump’s Treasury Secretary said Fort Knox audits are conducted every year, as we reported last month. “all the gold is present and accounted for.”

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