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29/07/24
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U.S. Senator to Propose Purchase of Bitcoin to Fortify the USD and Sustain U.S. Leadership
Two days ago, the U.S. Senator Cynthia Lummis proposed the establishment of a Bitcoin reserve towards fortifying the USD against rising inflation and ensuring that the United States remains the leader of the rapidly evolving international financial system.
The proposal is based on current dependence on certain hard assets like petroleum and gold to maintain the nation’s strategic reserves and such assets are crucial to U.S. independence and national security.
“Families across Wyoming and the U.S. are struggling to keep up with soaring inflation rates and record-breaking costs while our national debt reaches unprecedented levels; now more than ever, we need to create a brighter future for generations of Americans by diversifying into Bitcoin and securing our economic future,” said Lummis.
The proposed strategic Bitcoin reserve would hold Bitcoin for 20 years, “the only thing it could be used to pay for during that time period is paying down our country’s national debt.” While speaking at the Bitcoin 2024 conference two days ago, Lummis noted that it can be used to reduce the nation’s debt.
“This Bitcoin Reserve that we are going to create will start with the 210,000 Bitcoin that President Trump just mentioned and pull it into a reserve, stored in geographically diverse vaults, and that’s only the beginning,” said Lummis.
Hence, the senator said there will be an announcement regarding a bill on the proposal in the coming days. The bill will focus on establishing a decentralized network of secure Bitcoin vaults operated by the U.S. Department of Treasury, implementing a 1-million-unit Bitcoin buying program towards acquiring about 5 percent of total Bitcoin supply to mirror the nation’s gold reserves, as well as affirming private Bitcoin holders’ self-custody rights and emphasizing that the reserve will not lead to infringement on people’s financial freedoms.
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