Cynthia Lummis Proposes Bitcoin Reserve to Fortify Dollar and Boost National Economy

• Senator Cynthia Lummis proposes a Bitcoin reserve bill to strengthen the U.S. dollar and secure the nation’s financial future.
• The bill aims to establish a strategic reserve of 1 million BTC, approximately 5% of the total Bitcoin supply.
• The initiative would begin by transferring the 210,000 BTC already held by the U.S. government into a Treasury-managed reserve.
• The Bitcoin reserve will be held for at least 20 years and used only to reduce the country’s national debt.

Senator Cynthia Lummis of Wyoming has introduced a bill to establish a Bitcoin reserve for the United States. This strategic reserve aims to fortify the U.S. dollar against rising inflation and cement the nation’s leadership in the rapidly evolving global financial system.

The U.S. already has reserves in assets such as gold and petroleum, Lummis said in a statement on July 27. 

“Establishing a strategic Bitcoin reserve to bolster the U.S. dollar with a digital hard asset will secure our nation’s standing as the global financial leader for decades to come,” Lummis said. 

The draft bill includes language around adjustments made to gold certificates. 

“Within 6 months of the date of enactment of this section, the Federal reserve banks shall tender all outstanding gold certificates in their custody to the Secretary,” the draft bill read. “Within 90 days of the tender of the last such certificate, the Secretary shall issue new gold certificates to the Federal reserve banks that reflect the fair market value price of the gold held against such certificates by the Treasury, as of the date specified by the Secretary on each certificate.” 

The bill proposes the acquisition of 1 million BTC, which is approximately 5% of the total Bitcoin supply. The initiative would begin by transferring the 210,000 BTC already held by the U.S. government into a Treasury-managed reserve. Under the bill, the Bitcoin reserve will be held for at least 20 years and used only to reduce the country’s national debt.

Senator Lummis believes that establishing a strategic Bitcoin reserve would “secure our nation’s standing as the global financial leader for decades to come.” She argues that families across Wyoming and the U.S. are struggling to keep up with soaring inflation rates and record-breaking costs, and that diversifying into Bitcoin and securing the nation’s economic future is crucial.

The bill has garnered support from various quarters, with some experts calling it a “game changer” for the U.S. economy. However, there are also concerns about the volatility of Bitcoin and its potential impact on the U.S. economy.

According to a recent survey, 45% of Americans believe that Bitcoin has the potential to revolutionize the global financial system, while 30% are skeptical about its long-term viability.

Senator Lummis’s proposal to establish a Bitcoin reserve for the U.S. is a bold move that could have far-reaching implications for the nation’s economy. While there are risks associated with Bitcoin, the potential benefits of diversifying into this digital asset cannot be ignored. As the global financial landscape continues to evolve, it will be interesting to see how the U.S. government responds to this proposal and whether it will pave the way for other countries to follow suit.