Originally published on: July 27, 2024
In a bold move aimed at reducing the national debt, US Senator Cynthia Lummis has put forth a groundbreaking bill suggesting that the US government should purchase 5% of the total global Bitcoin supply. The proposal involves creating a “strategic Bitcoin reserve” to secure one million Bitcoins over a 20-year period.
Strategic Bitcoin Reserve Plan Unveiled at Bitcoin 2024 Conference
During her keynote address at the recent Bitcoin 2024 conference in Nashville, Senator Lummis unveiled her strategic Bitcoin reserve plan. She emphasized that the acquired Bitcoin would serve a singular purpose – to tackle the national debt crisis.
The Implementation Process and Financial Implications
Senator Lummis outlined a five-year implementation plan for acquiring one million Bitcoins, approximately 5% of the total 21 million Bitcoins in circulation. With Bitcoin trading at $68,105 per unit at the time of her announcement, the proposed purchase would amount to around $68.1 billion.
Benefits of Investing in Bitcoin Over Traditional Assets
Explaining the rationale behind the proposal, Senator Lummis highlighted the potential for Bitcoin to outperform traditional assets. By transitioning from US dollars to Bitcoin for part of the national reserves, the government could safeguard its wealth and potentially see it grow in value over time.
Renowned proponent of Crypto Initiatives
Known for her favorable stance on cryptocurrency, Senator Lummis received enthusiastic support from attendees at the Bitcoin 2024 conference. Describing the initiative as a pivotal moment akin to the Louisiana Purchase, she emphasized the transformative potential of Bitcoin for the national economy.
Reactions and Relations to Other Cryptocurrency Developments
Senator Lummis’ proposal comes in the wake of President Trump’s vision to position the US as the global hub for crypto activities. The move also follows her recent opposition to the proposed energy tax on Bitcoin mining by the Biden administration, as detailed in her report titled “Powering Down Progress: Why a Bitcoin Mining Tax Hurts America.”
In a fast-evolving landscape where cryptocurrency and government policies intersect, Senator Lummis’ proposal signals a noteworthy stride towards integrating Bitcoin into the national financial framework.
