Key Takeaways:
- Senator Cynthia Lummis proposes a bill for U.S. Treasury to buy 1 million bitcoins over five years to reduce national debt.
- Bitcoins would be held for at least 20 years, stored securely across various locations.
U.S. Senator Cynthia Lummis of Wyoming is set to introduce a bill directing the U.S. Treasury to purchase 1 million bitcoins over the next five years.
Valued at approximately $68 billion at current prices, this proposal aims to establish a “strategic bitcoin reserve” to help reduce the national debt and secure the United States’ financial future.
Senator Lummis, a long-time advocate of Bitcoin, envisions this reserve as a crucial step towards economic stability. Her plan involves the U.S. Treasury self-custodying the bitcoins across various geographic locations and holding them for at least 20 years.
This long-term strategy is designed to protect the asset’s value and potentially use it to pay down the national debt if necessary.
“The legislation will allow us to hold these bitcoins for at least 20 years unless they are sold to reduce the debt,” Lummis explained. She has been at the forefront of crypto-specific legislation efforts and sees this initiative as a pivotal moment in financial history, akin to the Louisiana Purchase.
Lummis’s proposal is not just about reducing debt but also about reinforcing the U.S. dollar’s position as the world’s reserve currency. By establishing a strategic Bitcoin reserve, the U.S. can solidify its stance against inflation and maintain its leadership in global financial innovation.
“Establishing a strategic Bitcoin reserve would firmly secure the dollar’s position as the world’s reserve currency into the 21st century and ensure we remain the world leader in financial innovation,” Lummis stated.
Her vision includes mirroring the size of current U.S. gold reserves with digital assets, reflecting a significant shift in how the nation approaches its financial reserves.
During a recent appearance in Nashville, Lummis highlighted the challenges posed by current government regulators to the growth of the Bitcoin industry in the United States. She suggested that a change in political control could facilitate the industry’s expansion.
“The main problem for Bitcoin in the United States is government regulators standing in the way of the industry growing,” Lummis said. She expressed optimism that the situation would improve if the GOP gained control of the Senate and if Senator Rick Scott became the Senate Banking Chair.
Senator Lummis’s speech resonate powerfully with the Bitcoin 2024 conference attendees, especially following former President Donald Trump‘s keynote address. Trump, who has pledged to make the U.S. the “crypto capital of the world” if elected, has bolstered the political momentum for such initiatives.
