Nikolas Sargeant
US Senator Cynthia Lummis has renewed her call for a Bitcoin reserve to help reduce the United States' national debt. This proposal comes in response to the Treasury Department's recent announcement that the US gross national debt has exceeded $35 trillion for the first time, a stark increase from $907 billion four decades ago.
Lummis argues that a strategic Bitcoin reserve could halt this financial trend and alleviate the debt burden for future generations. She has been developing legislation that would require the Federal Reserve to maintain Bitcoin as a strategic reserve asset.
At the Bitcoin 2024 conference, Lummis unveiled details of her proposed bill, which includes:
- Acquiring 1 million Bitcoin over five years for a government reserve
- Holding the acquired Bitcoin for at least two decades
- Requiring the Federal Reserve and Treasury to reallocate existing funds for the acquisition
Lummis contends that this reserve would reinforce the dollar's global dominance and secure America's economic future. She emphasizes the need for diversification into Bitcoin as a response to current economic challenges, including high inflation rates and rising costs of living.
While Republican presidential nominee Donald Trump did not endorse an official Bitcoin strategic reserve during his keynote speech at the conference, he pledged to maintain the US government's existing Bitcoin holdings acquired through asset seizures.
The proposal has sparked debate about innovative approaches to managing national debt and maintaining US economic leadership in an evolving global financial landscape.
