U.S. President-elect Trump shouted before the election that he wants to include Bitcoin in the national strategic reserve. Republican Senator Cynthia Lummis, seen as an ally of Trump, plans to promote a bill in the new Congress next year to establish a reserve of 1 million Bitcoins for the United States. She recently suggested that this could be achieved by selling part of the Federal Reserve's gold reserves. (Background: If Trump establishes a Bitcoin strategic reserve, it could 'self-destruct' the dollar's hegemony.. A big gift to China and Russia) (Supplementary background: Pennsylvania in the U.S. proposed a 'Bitcoin Strategic Reserve' bill: expected to invest billions of dollars to stockpile BTC) Senator Cynthia Lummis, seen as an ally of Trump, plans to push for a Bitcoin strategic reserve bill next year, establishing a reserve of 1 million Bitcoins for the U.S., which accounts for about 5% of the current Bitcoin supply. At current market prices, these purchases would require about $90 billion, and if the bill passes, the cost for investors to buy Bitcoin may be even higher. Lummis promotes selling gold to exchange for BTC. However, Cynthia Lummis recently suggested that the establishment of a reserve of 1 million Bitcoins could be achieved by selling part of the Federal Reserve's gold reserves without increasing the government deficit. She mentioned that the U.S. already has financial assets convertible into Bitcoin, specifically gold certificates, which have a rather neutral impact on the U.S. balance sheet. Before the election, Trump stated that he wanted to establish a national strategic reserve of Bitcoin, based on 200,000 Bitcoins seized by the government, while Cynthia Lummis's proposal would further strengthen the Bitcoin strategic reserve. According to her bill, Bitcoin must be held for at least 20 years, assuming its value growth helps reduce national debt. However, even if Trump takes office, alongside a Congress considered the friendliest toward cryptocurrencies in history, some market observers still believe that this proposal faces significant hurdles. Polymarket's betting odds show a 30% chance of Trump establishing a Bitcoin reserve. Theoretically, the Federal Reserve has enough gold reserves to buy 1 million Bitcoins and still retain a large amount of gold. According to the Federal Reserve's balance sheet, the Treasury currently holds gold certificates worth about $11 billion, but this is calculated based on the so-called statutory price fixed at $42.2222 per ounce since 1973. If calculated at the spot gold price, these gold reserves are worth about $675 billion. However, if the government sells gold on a large scale, it could depress the market price. Building a Bitcoin strategic reserve sparks controversy. It is worth noting that the pros and cons of the U.S. establishing a Bitcoin strategic reserve have recently sparked debate. Galaxy Digital founder Michael Novogratz believes that the likelihood of the U.S. establishing a Bitcoin strategic reserve is low, but if it comes true, the price of Bitcoin will soar to $500,000, as other countries may feel it necessary to establish similar reserves. MicroStrategy founder Michael Saylor recently stated that establishing a Bitcoin strategic reserve is an inevitable 'destiny' for the U.S., similar to past gold and land acquisitions. He is optimistic about Cynthia Lummis's proposal to establish a reserve of 1 million Bitcoins and described it as the greatest trade of the 21st century. However, Christian Catalini, co-founder and chief strategy officer of Lightspark and founder of the MIT Cryptoeconomics Lab, wrote on the 16th opposing this, believing that if Trump implements a Bitcoin reserve strategy and also dismisses Federal Reserve Chairman Powell, it could signify the end of the U.S. Federal Reserve System's leadership in global monetary policy. In Christian Catalini's view, at worst, establishing a Bitcoin strategic reserve would show doubts about the dollar and the U.S.'s sustainable debt repayment ability, which would be a terrible strategic mistake, essentially giving a big gift to Russia and China, who have long sought to undermine the dollar’s global dominance. Issuing reserve currency is a form of 'excess privilege.' Losing this status would mark the end of the U.S.'s status as a global superpower. Related reports: Reviewing Trump's 'full support for cryptocurrency' promises: Bitcoin strategic reserve, dismissing SEC chairman, not issuing CBDC. Polish presidential candidate shouts: Will establish a Bitcoin strategic reserve if elected! Global BTC auction heats up. If Trump really announces Bitcoin as the U.S. strategic reserve, what impact will it have? 'U.S. lawmakers recommend: Sell Fed gold to exchange for 1 million Bitcoin strategic reserve' This article was first published on BlockTempo (the most influential blockchain news media).

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