The Wyoming senator unveiled her plan at the Bitcoin Conference in Nashville.
NASHVILLE — U.S. Senator Cynthia Lummis announced her intention to introduce legislation for a “strategic bitcoin reserve” aimed at reducing the national debt of the United States. Speaking at the Bitcoin Conference, Lummis outlined a proposal to purchase 1 million bitcoin (BTC) over five years.
Wyoming senator emphasized the long-term commitment, stating that the bitcoin would be held for at least 20 years. Her proposal received notable support when former President Donald Trump, who spoke before her, endorsed the idea of a bitcoin reserve. At current prices, 1 million bitcoin are valued at approximately $68 billion.
A Bold Financial Strategy
Senator Lummis believes that investing in bitcoin could significantly impact the U.S. economy. The strategic reserve is designed to provide financial stability and a hedge against inflation, as bitcoin’s value has shown substantial growth over time.
By purchasing and holding bitcoin, the U.S. could potentially see a considerable return on investment. The idea is to leverage the increasing value of bitcoin to pay down the national debt, reducing the financial burden on future generations.
Economic Implications and Potential Risks
While the proposal is ambitious, it carries inherent risks. Bitcoin’s value is notoriously volatile, and significant price fluctuations could impact the reserve’s effectiveness. However, Lummis argues that the long-term benefits outweigh the risks, citing bitcoin’s historical performance and increasing global acceptance.
Support and Opposition
The proposal has sparked debate among policymakers and financial experts. Proponents highlight the innovative approach to managing national debt and the potential for substantial economic gains. Critics, however, express concerns about the volatility of bitcoin and the practicality of such a large-scale investment.
As Senator Lummis prepares to introduce her legislation, the discussion surrounding a strategic bitcoin reserve will likely intensify, with both supporters and detractors weighing in on its feasibility and potential impact on the U.S. economy.
