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 america 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 places. The belongings might solely be used to pay down the nationwide debt and would have to be held for at the very least 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 just lately surpassed $35 trillion.
Her proposal follows former President Donald Trump’s endorsing the thought 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.
Unbiased presidential candidate Robert F. Kennedy Jr. additionally referred to as for buying 500 bitcoins every day till accumulating a 4 million Bitcoin reserve.
Whereas Lummis admits her laws is unlikely to move earlier than the 2024 elections, she believes the rising political curiosity in Bitcoin reserves displays a paradigm shift. Bitcoin has turn into a serious marketing campaign problem, with each events courting the burgeoning trade.
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 might nonetheless move this 12 months as Bitcoin strikes nearer to the political mainstream.