The buzz around the United States potentially building a strategic bitcoin (BTC) reserve is only getting louder, thanks to recent political dynamics and ongoing economic debates. What once sounded like a wild idea is now turning into a hot topic, largely due to Donald Trump’s promise to transform the U.S. into the “crypto capital of the world.” Adding fuel to the fire, Senator Cynthia Lummis has become a prominent advocate, actively pushing for the nation to adopt a bitcoin reserve.
Conversations about a U.S. bitcoin reserve have been happening well before Donald Trump was elected.
Lummis introduced the cleverly named “Boosting Innovation, Technology and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act” in the Senate. Her proposal aims to position a BTC reserve as a tool to fortify the U.S. dollar while addressing the national debt. Even before election season kicked off, this concept had set social media ablaze. Platforms like X, Facebook, and Reddit are still overflowing with opinions, sparking lively debates and countless news stories.
It seems like everyone—plus their extended family—has something to say, with the discourse showcasing a kaleidoscope of perspectives. On Nov. 18, Blockstream CEO Adam Back weighed in with his thoughts. “If the U.S. Strategic Bitcoin Reserve happens prepare for 7 figure bitcoin. this cycle,” Back posted to X. He continued, “The market is skeptical on meaningful follow through for now, so that is not at all priced in.” Replying to a person in the thread, Back added that if the idea “becomes real” he would expect “rapid repricing.”
While some are thrilled by the prospect of hyperbitcoinization, not everyone finds the idea so fantastic. George Selgin, Director Emeritus of the Cato Institute’s Center for Monetary & Financial Alternatives, joined the conversation by sharing his thoughts and an editorial he penned on the bitcoin reserve topic. Selgin posted:
A U.S. “Strategic Bitcoin Reserves” (#SBR ) would serve the same purpose the official 8,133 metric ton U.S. gold stock now serves in upholding the U.S. dollar’s value—that is, _no purpose at all_.
In his editorial, Selgin takes a closer look at the issue. He highlights that the U.S. dollar remains unrivaled in its dominance, “despite a decline in its share of reserve assets.” The piece also points out that the U.S. government’s foreign exchange reserves are mostly idle and deemed unnecessary—much like the nation’s 8,133 metric tons of gold. On Sunday, Vik Sharma, founder of Cake Wallet and president and CEO of Liberty Steel USA, shared his thoughts on the matter.
“The risk I see of countries making bitcoin a Strategic Reserve is that some countries will seize the [bitcoin] of their citizens,” he said. “Am I being paranoid? You think this will only happen in countries run by despots? Well the U.S. did it in 1933. Look up Executive Order 6102 by Roosevelt which lasted until 1974 … You gotta keep some of your ‘store of value’ in some real invisible currency. Damn … there’s that monero side of me spewing conspiracy sh** again.”
The debate over a U.S. bitcoin reserve reveals a clash between the old and the new, the centralized and the decentralized. At its core, many believe there lies a question of principle: Should a tool born to liberate individuals from state control be co-opted by governments for their own ends? The answer reflects not just economic strategy but a nation’s philosophy of freedom.
The adoption of BTC as a strategic reserve could very well be a profound contradiction unless grounded in an ethos of liberty and self-reliance. True innovation cannot flourish where state coercion taints its purpose. If the United States wishes to lead, it must embrace policies that empower individuals, not seize their wealth under pretense. A free future demands integrity, not hypocrisy.
