With Donald Trump having been elected the new president of the United States, the ability for the country to make a National Bitcoin reserve is slowly becoming a viable idea.
Trump has also expressed his intention to make the currency BTC a focal point in the economic revival strategies during his administration that begins on the inauguration day, the 20th of January. "We Are Going To Build A Strategic Bitcoin Reserve” Pro-crypto senator, Cynthia Lummis was very instrumental in this, she introduced the Strategic Bitcoin Reserve Legislation on July 31standig. amerikanitor
This legislative portrays one of the issues that were developed during the 2024 Bitcoin National Conference in Nashville, Tennessee where Trump and Senator Lummis talked about the importance of BTC to the US economy.
Lummis had a clear idea of the legislation, saying, As families across Wyoming continue to endure the effects of high inflation and as our national debt hits all-time records, it is time for us Americans to show some radicalism and secure a better tomorrow for coming generations. The US will be solidified as the leader in world financial innovation with btc’s incorporation in society. And with it’s influance becoming the first developed country to adopt btc for savings is going to transform the economy completely.
With reference to the victory of Trump over Kamala Harris, Lummis on Wednesday once declared on social media that, ‘We are going to build a strategic Bitcoin reserve.’
This kind of program has received vocal support from industry players like Dennis Porter, CEO and co-founder of the Satoshi Action Fund who said this:
Let’s be perfectly honest the anti-Bitcoin movement is dead since last night. The USA will be the most pro-Bitcoin nation in the world. We will deploy what is called a Bitcoin Strategic Reserve. We will embed into law a law to protect Bitcoin Rights.
In the United States, it s believed the government has a commitment for one million Bitcoin
For context, the scope of the law aims to develop a strategic BTC reserve that would be used as a supplemental reserve asset to the US balance sheet. Other key elements of the proposal include:
Decentralized Bitcoin Vaults: A network of BTC vaults operated by the US Treasury Department that will enact high degree standards to maintain effective physical and cyber protection of the nation’s BTC assets.
Bitcoin Purchase Program: The Bitcoin Purchase Program proposes purchase over a period of time one million of BTC with the aim of accumulating close to 5% of the total amount of Bitcoin in circulation, which is comparable to the proportion held in the nation’s gold reserves.
Funding Sources: The program would be funded by withdrawing money that has already been allocated within the Federal Reserve System and the Department of the Treasury.
Self-Custody Rights: The bill would also recognize the self-custody rights of private BTC owners so that their personal economic rights would not be compromised.