Senator Cynthia Lummis proposes to accept Bitcoin as a strategic reserve.
According to the bill, Trump’s government will purchase 1 million Bitcoin, which is 5% of the total supply.
Lummis’ proposal is a solution to the country’s mounting debt.
Republican Senator Cynthia Lummis has introduced a revolutionary bill to accept Bitcoin as the United States’ strategic reserve. During the Bitcoin Conference 2024 in Nashville, Lummis proposed that the government under Donald Trump’s presidency would purchase 5% of the total Bitcoin supply and hold it for at least 20 years.
The Senator acknowledged the move as a solution for the country’s mounting debt. Hinting at the potential developments and their impacts on the country’s economy, Lummis wrote in a recent X post, “The ₿est is yet to come… you ain’t seen nothing yet.”
The ₿est is yet to come… you ain’t seen nothing yet.#Bitcoin2024
— Senator Cynthia Lummis (@SenLummis) July 27, 2024
In an interview, Lummis posited that Bitcoin is a great store of value. Comparing Bitcoin with the US Dollar, Lummis highlighted the former’s potential to boost the country’s financial lead, stating,
Over the last four years or so it has increased about 55% per year. During the same period, the U.S. dollar has declined in value and we’ve seen increasing inflation…So it would be of value, in my opinion, to have a hard asset that backs the U.S. dollar and that grows in value instead of declines in value.
According to Lummis’ proposal, the US government would acquire 1 million Bitcoins within the next five years. While Bitcoin is currently valued at around $67,571, 1 million Bitcoin would cost about $68 billion.
Further, Lummis detailed the proposal, which would begin with the 210,000 Bitcoins that the Federal Government currently holds. In his keynote address at the Bitcoin Conference, Trump has already asserted that the government would never sell the current holding but would add it to the reserve.
Though previous reports hinted at Lummis’ plans to include Bitcoin as a national reserve, she hadn’t commented on the matter until her speech at the conference. In her speech, Lummis pinpointed her preference for Bitcoin over the US Dollar and other assets as the former grows in value while the latter debases.
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