United States Senator Cynthia Lummis has introduced a revolutionary bill at the Bitcoin Conference 2024. Specifically, the bill proposes that the US government purchase and hold 5% of the total BTC supply. Moreover, this strategic reserve aims to address the national debt and secure America’s economic future. Additionally, the bill suggests the Federal Reserve should acquire one million Bitcoin over five years.
Bitcoin as a Strategic Reserve
Lummis emphasizes the significance of Bitcoin as a financial asset. She believes holding BTC will help reduce national debt and maintain global financial leadership. Furthermore, at the conference, Lummis passionately declared that this move could be America’s “Louisiana purchase moment.” She highlighted the potential for Bitcoin to grow in value, contrasting it with the depreciating US dollar.
The Cost of the Bitcoin Reserve
Purchasing one million BTC would cost around $68.1 billion. Lummis stated that this reserve would start with 210,000 BTC, stored in diverse vaults. She argued that shifting assets from dollars to BTC could stabilize and grow the government’s wealth. This plan aligns with her previous critiques of the current administration’s tax policies on BTC mining.
Impact on the US Economy
Lummis’s proposal is seen as a step towards integrating BTC into mainstream financial policy. She believes that establishing a Bitcoin reserve could ensure the dollar’s position as the world’s reserve currency. This move could also pave the way for the US to become a leader in financial innovation. The bill could have far-reaching implications for the US economy and the global cryptocurrency market.
Support and Criticism
Lummis received a positive reaction from the Bitcoin Conference attendees. Her pro-crypto stance has made her a popular figure in the industry. The bill’s introduction comes at a time when the crypto community is facing regulatory challenges. Former President Donald Trump also expressed support for pro-crypto policies at the conference, promising to make the US a “Bitcoin superpower” if re-elected.
At the Bitcoin Conference 2024, Trump criticized the SEC’s approach to BTC and vowed to end the “anti-crypto crusade” if elected. He promised to make the US the “crypto capital of the planet” and a “Bitcoin superpower.” Trump now views the government, not crypto, as the real threat to the dollar. He also unveiled plans to retain all US Bitcoin holdings as a strategic reserve and transform the country into a mining powerhouse. This marks a significant shift in Trump’s stance on cryptocurrency, indicating potential major policy changes if he returns to office. His support further amplifies the importance of Lummis’s bill, highlighting a growing political interest in integrating BTC into the national financial strategy.
