Bitcoin Out, Gold In: Senator’s Bold Proposal To Replenish US Reserves
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US Senator Cynthia Lummis has introduced a bold proposal to establish a strategic Bitcoin reserve, which would involve selling a portion of the Federal Reserve's gold holdings to acquire Bitcoin. This proposal aims to bolster America's balance sheet and ensure the transparent management of Bitcoin holdings by the federal government .
The proposed "BITCOIN Act" would establish a decentralized network of secure Bitcoin vaults operated by the US Department of Treasury, with statutory requirements ensuring the highest level of physical and cybersecurity for the nation's Bitcoin holdings. The plan also involves implementing a 1-million-unit Bitcoin purchase program over a set period, representing approximately 5% of the total Bitcoin supply .
Lummis believes that this move could strengthen national assets and potentially help reduce US debt if Bitcoin appreciates over time. However, the proposal faces resistance in Congress and skepticism in financial circles, with concerns about Bitcoin's volatility and the potential difficulty in convincing lawmakers to support substantial Bitcoin investments .
Some experts predict that if the US establishes a Bitcoin reserve, it could spark a global wave of similar national reserves, potentially driving Bitcoin's price to $500,000. Despite the challenges, Lummis remains hopeful that Trump's endorsement and his advisors' crypto expertise will help sway Congress .
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