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 price 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 areas. The belongings might solely be used to pay down the nationwide debt and would have to be held for not less than 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 known as for buying 500 bitcoins each 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 into a significant marketing campaign challenge, with each events courting the burgeoning business.
Lummis invoice represents essentially 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 cross this yr as Bitcoin strikes nearer to the political mainstream.