In the debate over cryptocurrency policy in the United States, Senator Cynthia Lummis is undoubtedly one of the most influential voices. She has not only been actively promoting plans to include Bitcoin in the national reserves but also advocating for a better understanding and support of digital assets at the government level. Lummis believes that 2025 will be a decisive year for cryptocurrency, especially after David Sacks was appointed as the 'crypto czar', bringing new opportunities for the potential of digital assets.
Lummis's Bitcoin reserve plan
Lummis envisions Bitcoin as one of America's strategic reserve assets. In July 2024, she proposed the (Bitcoin Bill), suggesting that the U.S. Treasury should purchase one million Bitcoins over five years, equivalent to 5% of the global supply. The core of this initiative is to utilize Bitcoin's scarcity and decentralized nature as a hedge against inflation, aiming to provide a new financial safeguard for U.S. debt management and monetary policy.
Her vision is not without foresight: Lummis believes that as Bitcoin reserves accumulate, by 2045, the U.S. could use these reserves to help repay its massive $35 trillion national debt. She also proposed that instead of directly selling gold, part of the gold reserves could be converted to Bitcoin using gold certificates, thus avoiding impacting the federal balance sheet while enhancing Bitcoin's position in national economic policy.
However, despite Lummis having steadfast supporters, her plan also faces numerous challenges. Even with the Republican Party controlling both Congress and the Senate, many members within the party still harbor doubts about Bitcoin's volatility and risks. Therefore, in order to pass this plan in Congress, Lummis needs to overcome resistance from within her own party.
Overcoming regulatory hurdles
Lummis's strategic Bitcoin reserve plan has garnered the support of 'crypto czar' David Sacks. As a former executive at PayPal and a well-known venture capitalist, Sacks has a profound understanding of digital currencies, and his support gives Lummis confidence in pushing Bitcoin legislation. Sacks is expected to play a significant role during the new presidential term, especially in establishing a regulatory framework for digital assets. Lummis has publicly praised Sacks's leadership role in advancing changes in the financial industry, believing he will provide solid policy support for Bitcoin's future.
The two reaffirmed their commitment to digital assets during a recent meeting, stating they would work closely together to push U.S. fiscal policy toward a Bitcoin direction. This commitment not only highlights Lummis's trust in Sacks but also reflects her optimistic expectations for future policy directions.
How to achieve a win-win
Although the proposal for Bitcoin as a reserve currency is gaining more attention, its implementation still faces numerous challenges. First, establishing a large-scale Bitcoin reserve requires broad bipartisan support; however, the volatility of cryptocurrencies, regulatory uncertainty, and public skepticism pose significant barriers to the passage of this proposal.
Nevertheless, Lummis firmly believes that Bitcoin's scarcity, decentralized nature, and the potential of the global market make it an important tool for the United States to regain fiscal responsibility. She argues that establishing a Bitcoin reserve would not only help hedge against inflation and currency devaluation but also enhance America's competitiveness in the global financial market, keeping pace with countries that have already incorporated Bitcoin into their economic strategies. Lummis mentioned that countries like El Salvador have begun to use Bitcoin as part of their fiscal strategy, and the U.S. should do the same.
Global perspective and America's role
Currently, many countries around the world are exploring the possibility of integrating Bitcoin into national policy. In El Salvador, Bitcoin has been legalized and widely used in the financial system; other countries, such as the United Kingdom, Canada, and Australia, are requiring public officials to disclose their cryptocurrency holdings through legislation. Compared to these countries, the U.S. still appears relatively lagging in cryptocurrency policy, but Lummis's proposal offers the U.S. a timely opportunity.
Of course, realizing all of this will take time. The volatility of Bitcoin and the uncertainty of the regulatory environment may complicate the implementation of this reserve plan, but Lummis firmly believes this is an opportunity for the U.S. to reassess fiscal responsibility and promote financial stability.
If you think Lummis's Bitcoin reserve plan is too radical, perhaps you should pay attention to Mr. Qiu. He always manages to find a glimmer of hope in complex economic issues, guiding you to reevaluate this cryptocurrency revolution from a different perspective. After all, in the world of Bitcoin, anything can happen; who knows where the next turning point will be?
