According to TechFlow, U.S. Senator Cynthia Lummis proposed a bill at the Bitcoin 2024 conference held in Nashville on July 27, suggesting that the U.S. government purchase 5% of the world's Bitcoin supply and hold it for at least 20 years.
Lummis said the move is aimed at reducing U.S. debt. Under the proposal, the U.S. government will acquire 1 million bitcoins over five years, about 5% of the total supply. At the current price of $68,105, this would cost about $68.1 billion.
Lummis emphasized that this Bitcoin reserve will start with the 210,000 Bitcoins mentioned by Trump and will be stored in geographically dispersed vaults.
She believes that holding Bitcoin will increase in value compared to holding US dollar assets that depreciate by at least 2% each year. This proposal comes on the heels of former President Trump's announcement that if elected, he would make the United States the global center of cryptocurrency. It is worth noting that Lummis also recently released a report opposing the Biden administration's proposal to impose a 30% energy consumption tax on Bitcoin miners.
