Senator Cynthia Lummis has reiterated the need for the government to implement a “strategic Bitcoin reserve.” In a recent posting on X, Lummis wrote about the national debt that has grown beyond $35 trillion and proclaimed that only the accumulation of the Bitcoin reserve can reverse the unhealthy trend in the modern American economy. These recommendations would further assist in halving the fiscal deficit and paying down the national debt for generations to come, she pointed out.
The most recent post made by Lummis is consistent with her suggestion made during the Bitcoin 2024 conference in Nashville. Responding to the confirmation, in her keynote speech, the Senator proposed a strategic Bitcoin reserve bill to transform the U. S. fiscal strategy. She suggested that it is time for the U. S to buy five percent of the available Bitcoins, and this should be stored for not less than two decades to address what she referred to as the rapidly growing national debt.
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Lummis’ Strategy for a Bitcoin Reserve
In her plan, Lummis outlined that the policy involved the government of the USA purchasing one million Bitcoins for approximately sixty-eight billion U.S. dollars, with the value of one Bitcoin during her presentation. It advised that the government start the initiative by moving 210000 Bitcoins that former president Donald Trump has once mentioned to be stored securely in geographical sites.
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Regarding CNBC news, Lummis said, “We have the money now, but we will no longer hold it in U. S. dollars and assets intended to debase at least 2% annually.” Senators expressed confidence that getting involved in owning Bitcoins could diversify the nation’s fiscal reserve and support the U. S. dollar by providing a buffer against inflation. In this case, Brian Lummis supposes it can contribute to maintaining U.S. dominance in the continuously transforming international financial environment.
Most significantly, Lummis’ plan recommends that the goal of the proposed strategic reserve is to mimic the size of the U. S. gold reserve and establish a network of secure Treasury-department-owned vaults for storing bitcoins. This would mean that there would be a systematic way of managing the digital asset and ensuring that all risks are mitigated to the maximum extent possible so that the ability of the digital asset to bring positive change to the nation’s economy is fully realized.
In conclusion, Senator Lummis’ advocacy for a strategic Bitcoin reserve reflects a bold approach to addressing the U.S. national debt and strengthening the country’s financial stability. Her proposal aims to leverage the growth potential of Bitcoin to create a more robust and inflation-resistant fiscal reserve, positioning the U.S. at the forefront of the evolving global financial landscape.
Read Also: Senator Cynthia Lummis Advocates for Bitcoin Integration into the U.S. Financial System
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.