Senator Cynthia Lummis (R-Wyo.) introduced plans to introduce laws that will direct the U.S. authorities to build up 1 million Bitcoins, which at present costs can be value greater than $68 billion.
Talking on the Bitcoin 2024 convention in Nashville, Lummis mentioned the invoice would require the U.S. Treasury Division to buy Bitcoin inside 5 years as a strategic reserve asset to strengthen the U.S. greenback. She in contrast it to the federal government’s Strategic Petroleum Reserve.
“We all know via information modeling and previous expertise with Bitcoin that it could completely change the mess that the U.S. is in with its debt and deficits,” Loomis mentioned.
The senator mentioned the federal government would self-custody Bitcoin in numerous geographical places. These property can solely be used to repay the nationwide debt and must be held for no less than 20 years.
Loomis has been one of many main advocates for Bitcoin in Congress. She believes that purchasing Bitcoin will assist stabilize the worth of the greenback and fight inflation. The nationwide debt not too long ago exceeded $35 trillion.
Her proposal comes after former President Donald Trump backed the thought of a U.S. Bitcoin reserve at a convention in Nashville. Trump mentioned he would by no means promote the 210,000 bitcoins held by the federal government.
Impartial presidential candidate Robert F. Kennedy Jr. has additionally referred to as for getting 500 Bitcoins per day till reserves of 4 million Bitcoins are accrued.
Whereas Lummis admits her laws is unlikely to go earlier than the 2024 election, she believes the rising political curiosity in Bitcoin reserves displays a paradigm shift. Bitcoin has change into a significant marketing campaign problem, with each events pursuing the nascent trade.
The Lummis invoice represents essentially the most aggressive authorities adoption of Bitcoin to this point. Though its future stays unsure, the transfer will legitimize Bitcoin as an financial asset.
Lummis mentioned she was “optimistic” that different Bitcoin-focused payments might nonetheless go this 12 months as Bitcoin strikes nearer to the political mainstream.
