Senator Lummis Proposes $67 Million Bitcoin Strategic Reserve to Support USD

The proposal came during a speech by the Wyoming Republican representative at the Bitcoin 2024 Conference in Nashville on July 27.

“We can create a brighter future for generations of Americans by diversifying into Bitcoin and being the first developed nation to create a strategic reserve,” he said.

US Bitcoin Reserve

The pro-crypto politician said this reserve would strengthen the dollar’s position as a global reserve currency.

“Establishing a strategic Bitcoin reserve would firmly secure the dollar’s position as the world’s reserve currency in the 21st century and ensure that we remain the global leader in financial innovation,”

We can create a brighter future for generations of Americans by diversifying #Bitcoin and be the first developed nation to create a strategic reserve. Read more ⬇️⬇️ pic.twitter.com/1cWAssvZIW

— Senator Cynthia Lummis (@SenLummis) July 27, 2024

Lummis added that American families are struggling to keep up with rising inflation rates and record costs while the national debt reaches unprecedented levels.

“Now more than ever, we must create a brighter future for generations of Americans by diversifying into Bitcoin and securing our economic future.”

The legislation would establish a decentralized network of Bitcoin vaults operated by the Treasury Department and implement a program to purchase 1 million units of BTC over a defined period of time “to acquire a total stake of approximately 5% of total supply of Bitcoin, reflecting the size and scope of the gold reserves held by the United States.”

That’s roughly 986,605 BTC worth about $67 billion at today’s prices.

Senator Lummis is not the first politician to suggest a Bitcoin reserve. At the same conference, Donald Trump said that if elected, his government would keep 100% of all BTC it holds, which would become part of its reserve strategy.

“This will in fact serve as the core of a national strategic Bitcoin reserve,”

Trump also said that under him, “the United States will be the crypto capital of the planet and the Bitcoin superpower of the world.”

The US government currently holds 213,238 BTC worth about $14.5 billion, according to Arkham Intelligence. However, chain movements and the possibility of liquidation often cause market volatility.

Trump also said that if elected, the “anti-crypto crusade of Joe Biden and Kamala Harris will end,” before adding, “The weaponization of your industry ends.”

BREAKING: Donald Trump announces he will form a US government #Bitcoin strategic reserve if he is elected president.

This would be a Bitcoin reserve similar to the Strategic Petroleum Reserve.

If this happens, it could be the biggest development in crypto history. pic.twitter.com/kGnEdZ94Lx

— Kobeissi Letter (@KobeissiLetter) July 27, 2024

Large Bitcoin Purchases Expected

Independent presidential candidate Robert F. Kennedy Jr. he also pledged to sign an executive order ordering the US Treasury to buy 550 bitcoins daily until the reserve reaches 4 million BTC.

It aims to have the US BTC reserve in the same proportion as its gold reserves, which is currently around 19% of global reserves.

“The cascading impact of these actions will eventually move Bitcoin to a valuation in the hundreds of trillions of dollars,” he added.

Republicans are pushing for crypto voting ahead of the November election and Democrats have been absent so far with presidential candidate Kamala Harris not attending the conference.

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