Senator Cynthia Lummis Unveils Bitcoin Reserve to Fight National Debt
The legislation was revealed on Wednesday at the Bitcoin 2024 event in Washington, D.C., to create a reserve backing the U.S. dollar with Bitcoin, now under greater and increasing fiscal pressures.
This new legislation would mean adding Bitcoin to the balance sheet of the Federal Reserve as a strategic reserve asset. The Bitcoin buying program over five years, similar to the strategic petroleum reserve, will likely be led by the U.S. Treasury. According to Lummis, this will further stabilize and solidify the dollar across the world and might also permanently alter the course of the economy.
Wyoming Senator Cynthia Lummis said the role of Bitcoin would be somewhat akin to a strategic reserve aimed at shoring up the dollar and fending off inflation. The government would hold this bitcoin – the way it does gold at various secure locations – and would use it to pay down debt but would hold each Bitcoin dormant for no fewer than 20 years.
