Senator bought Bitcoin for the first time in 2013 and since then has been one of the biggest voices on cryptocurrency in the US.
Cynthia Lummis /Reproduction
US Senator Cynthia Lummis introduced a bill for the US to purchase 1 million bitcoins. The amount is equivalent to R$395 billion at the current price and represents 4.76% of the entire supply of 21 million units of the cryptocurrency.
The proposal was presented at the Bitcoin 2024 conference, shortly after former American president Donald Trump said that Bitcoin would surpass gold in market value and promised not to sell the more than 213,000 coins they already own, resulting from confiscations.
As the US is the country with the largest amount of gold in its reserves, 8,133 tons, it would not be surprising if they bought Bitcoin. After all, cryptocurrency is being seen as digital gold due to its scarcity.
Cynthia Lummis presents Bitcoin strategic plan for the US
While some politicians are only beginning to look at Bitcoin after the arrival of ETFs on Wall Street, Cynthia Lummis has been a fan of the cryptocurrency for years. As an example, the American senator was one of the first to buy BTC, recommending its use in retirement plans.
Last Saturday (27), during the Bitcoin 2024 conference, Lummis presented a bill for the USA itself to adopt this strategy. The plan is for the country to buy 1 million bitcoins, currently equivalent to R$395 billion.
“Establishing a Bitcoin strategic reserve would firmly secure the dollar’s position as the world’s reserve currency in the 21st century and ensure we remain the world leader in financial innovation.”
“Families in Wyoming and across the U.S. are struggling to keep up with rising inflation rates and record costs as our national debt reaches unprecedented levels,” said Senator Lummis. “Now more than ever, we need to create a brighter future for generations of Americans by diversifying into Bitcoin and securing our economic future.”
As a comparison, today MicroStrategy holds 226 thousand bitcoins and the BlackRock, Grayscale and Fidelity ETFs hold 338,129, 270,589 and 181,061 coins, respectively, totaling around 1 million coins when added together.
Therefore, buying pressure of this size from the US could easily move the price of the cryptocurrency. Furthermore, if they initiate this plan, it is possible that other economic powers will follow the same path, taking BTC to its final stage.
Cynthia Lummis' full proposal can be seen on her own website, where the senator also proposes “self-custody rights” for Bitcoin investors and the creation of a massive security scheme to protect that 1 million BTC.
Bitcoin operates higher after positive speeches by politicians at a conference
Although it fell at the beginning of the month due to Germany selling 50,000 bitcoins, Bitcoin staged a strong recovery in the following weeks. This Monday (29), the cryptocurrency was traded for US$70,000.
Speeches by Donald Trump, Cynthia Lummis and other American politicians at the Bitcoin 2024 conference helped boost investor morale. After all, cryptocurrency gained prominence even in the traditional media, present at the event.
With just two days left until the end of July, Bitcoin is expected to close another month with gains, currently at more than 10%. The hope is that BTC will break resistance in the US$72,000 region, recording a new historic high in 2024.
