U.S. Government Urged to Purchase 1 Million BTC | Senator Lummis Introduces Bitcoin Reserve Bill

In a bold move towards financial innovation, Senator Cynthia Lummis has proposed a bill to establish a strategic Bitcoin reserve in the U.S., with plans to purchase 1 million BTC over five years.

This initiative aims to reduce the national debt significantly by 2045, marking a potential shift in how governments handle fiscal policy and asset management.

Discover the details and implications of this ambitious proposal.

Official Introduction of the Bitcoin Reserve Bill

Cynthia Lummis, a Republican Senator known for her support of cryptocurrencies, officially introduced a bill at the "Bitcoin 2024" conference held in Nashville, Tennessee, advocating for a strategic Bitcoin reserve in the United States.

On the 24th of this month, FOX Business reported the possibility of Senator Lummis introducing a bill to hold Bitcoin as a reserve asset. This was formally confirmed by Lummis on the 28th, when she announced the bill.

The bill proposes an investment strategy to purchase a total of 1 million BTC, equivalent to 5% of the Bitcoin supply, over five years and hold it for at least 20 years. If passed, this would result in the U.S. government acquiring and maintaining a significant amount of BTC.

Aiming to Repay National Debt with BTC Investment Strategy

The goal of the bill is to reduce the United States' substantial debt, with the expectation that adopting a Bitcoin reserve could potentially halve the debt by 2045.

Specifically, the plan begins with the U.S. government retaining the 210,000 BTC it already holds, rather than selling it, and then further purchasing additional Bitcoin.

Senator Lummis stated, "Instead of holding our current funds in U.S. dollars or assets that devalue by at least 2% annually, we should maintain them in appreciating assets." She explained, "A Bitcoin reserve could stop the runaway train we're on and allow us to pay off the national debt for future generations."

Regarding the Bitcoin held by the U.S. government, former President Donald Trump has also expressed a policy of continued retention. He declared, "As a policy of the U.S. government, we will retain 100% of all Bitcoin currently held or acquired in the future," raising expectations for his initiatives if re-elected.

Additionally, on the 28th of this month, a Hong Kong legislator also mentioned a plan to consider Bitcoin reserves, suggesting a potential global trend towards adopting Bitcoin reserves beyond the United States.

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