United States Senator Cynthia Lummis recently introduced the Bitcoin Reserve Bill to create a “strategic Bitcoin reserve.” This bold move could change the financial world. The proposal was revealed on July 27, 2024, at the Bitcoin 2024 Conference in Nashville, Tennessee. It suggests that the U.S. government should buy 5% of the world’s Bitcoin supply and keep it for at least 20 years.
“This is the solution, this is the answer, this is our Louisiana purchase moment, thank you Bitcoin!” Lummis declared to an enthusiastic audience.
Lummis’ plan is for the U.S. government to buy 1 million Bitcoins, about 5% of the total 21 million Bitcoins supplied. When the announcement was made, Bitcoin would have cost $68,105. This buy would be around $68.1 billion. The objective is to use these assets to cut national debt and achieve financial stability.
“It can be used for one purpose, to reduce our debt,” Lummis emphasized. The acquisition will happen over five years, ensuring a systematic approach to collecting the cryptocurrency.
Senator Lummis Proposes U.S. Bitcoin Reserve Plan
Lummis, recognized for her pro-crypto views, was warmly welcomed as she presented her vision. She pointed out that the reserve would begin with the 210,000 Bitcoins already in discussion by former President Donald Trump and would be stored in geographically diverse vaults.
“We have the money now, but we will no longer be holding it in US dollars and assets that are designed to debase at least 2% per year, we’ll be holding it in an asset that will grow in value,” she revealed.
The announcement came right after Trump’s keynote speech, in which he promised to make the U.S. the global crypto capital if re-elected. Lummis’s proposal is regarded as a significant step towards this goal.
Lummis has spoken against the Biden administration’s proposed 30% excise tax on Bitcoin miners. On July 23, she released a report titled “Powering Down Progress: Why A Bitcoin Mining Tax Hurts America,” in which she argued that the tax would harm the U.S. energy grid and the country’s overall economic progress.
If passed, her latest initiative could mark a historic shift in how the U.S. government approaches its debt and its involvement in the cryptocurrency market.
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