Senator Cynthia Lummis (R-WY) has introduced plans to introduce laws directing the U.S. authorities to build up 1 million Bitcoin, which might be value over $68 billion at present costs.
Talking on the Bitcoin 2024 convention in Nashville, Lummis mentioned the invoice would have the U.S. Treasury buy Bitcoin over a 5-year interval as a strategic reserve asset to fortify the greenback. She likened it to the federal government’s strategic petroleum reserve.
“We all know from modelling the numbers and previous expertise with Bitcoin that it’s able to being an absolute sport changer for the mess the USA has gotten itself into with its debt and its deficits,” says Lummis.
The senator mentioned the federal government would self-custody the Bitcoin throughout varied geographic areas. The property may solely be used to pay down the nationwide debt and would have to be held for a minimum of 20 years.
Lummis has been one of many main Bitcoin advocates in Congress. She believes buying Bitcoin will assist stabilize the greenback’s worth and counter inflation. The nationwide debt not too long ago surpassed $35 trillion.
Her proposal follows former President Donald Trump’s endorsing the concept of a U.S. Bitcoin reserve on the Nashville convention. Trump mentioned he would by no means promote any of the federal government’s 210,000 bitcoin holdings.
Impartial presidential candidate Robert F. Kennedy Jr. additionally referred to as for buying 500 bitcoins day by day till accumulating a 4 million Bitcoin reserve.
Whereas Lummis admits her laws is unlikely to cross earlier than the 2024 elections, she believes the rising political curiosity in Bitcoin reserves displays a paradigm shift. Bitcoin has turn out to be a serious marketing campaign difficulty, with each events courting the burgeoning business.
Lummis invoice represents probably the most aggressive authorities adoption of Bitcoin proposed but. Although its prospects stay unsure, the transfer would legitimize Bitcoin as an financial asset.
Lummis mentioned she is “optimistic” that different Bitcoin-focused payments may nonetheless cross this 12 months as Bitcoin strikes nearer to the political mainstream.