Michael Saylor supports Senator Lummis’ push for a U.S. Bitcoin reserve.
Proposal suggests Bitcoin could be added to U.S. reserves alongside gold.
Policy concerns make U.S. Bitcoin reserve adoption unlikely in near future.
United States Senator Cynthia Lummis has reiterated her plans to adopt Bitcoin as the country’s national reserve. Lummis’ proposal demands to make Bitcoin part of the country’s financial reserves along with traditional assets like gold. The proposal received support from leading industry players like Michael Saylor, co-founder of the technology company, MicroStrategy.
The United States needs a Strategic #Bitcoin Reserve. https://t.co/ZKy3WMbuaz
— Michael Saylor
(@saylor) November 6, 2024
Saylor is well known for his positive stance on Bitcoin and his company holds billions of dollars in Bitcoin as part of its assets. Saylor took to social media to support Lummis’ proposal and he called it a smart move to help stabilize the U.S. economy and protect against financial risks.
Lummis’ post comes shortly after the recent re-election of former President Donald Trump. She believes that a Bitcoin reserve could act as a tool to protect the economy from inflation. However, the proposal is facing some challenges because of policy concerns and economic risks.
The United States has traditionally relied on a gold reserve to support the dollar and stabilize the economy even today the country holds over 8000 metric tons of gold in reserve. Though Bitcoin’s value would be far less than that of gold, Lummis proposes that a Bitcoin reserve could work as a modern addition to the country’s reserve strategy.
If the Trump administration decides to act on this proposal, it could try to classify Bitcoin as a “strategic asset” similar to how the U.S. manages its petroleum reserve. But, for a larger reserve, Congress would need to approve the plan which could be challenging due to high levels of concern about the risks of Bitcoin.
There are Congress members on both sides who are concerned about Bitcoin’s volatility and its risks to the national balance sheet. As inflation is one of the major concerns, some leaders see Bitcoin as too unstable for a national reserve. Although it is unlikely that the U.S. will adopt a Bitcoin reserve in the near future, the support from Saylor adds attention to the idea. This proposal is another step in the discussion about cryptocurrency’s role in the U.S.
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