Transforming U.S. Fiscal Policy with a Strategic Bitcoin Reserve, Senator Cynthia Lummis (R-WY) has introduced a groundbreaking proposal aimed at reshaping the fiscal policy of the United States through the creation of a strategic Bitcoin reserve. The proposal, set to be presented as law in the coming days, suggests that the U.S. government should acquire one million Bitcoin over five years, representing approximately 5% of the total Bitcoin supply.
A Vision for Debt Reduction
The primary objective of the strategic Bitcoin reserve is to address the nation’s escalating debt, currently at a staggering $34.99 trillion. Lummis argues that by holding Bitcoin, the United States could possess an asset that might halve the national debt by 2045. In her keynote speech at the Bitcoin 2024 conference, Lummis stated, “Establishing a strategic Bitcoin reserve will firmly safeguard the dollar’s place as the world’s reserve currency into the 21st century and ensure we remain the world leader in financial innovation.”
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Funding and Security Measures
The Act outlines the creation of a decentralized network of secure Bitcoin vaults operated by the Treasury Department, adhering to the highest standards of physical and cybersecurity. The funding for Bitcoin acquisition will come from reallocating existing funds within the Federal Reserve System and the Treasury Department.
Lummis emphasized that the strategic reserve would not only bolster the American economy but also ensure the dollar remains competitive in the evolving global financial landscape. She likened the project to a “Louisiana Purchase moment,”
Protecting Financial Freedoms
The proposal also ensures that the strategic reserve will respect the self-custody rights of private Bitcoin holders, thereby safeguarding personal financial freedoms. This announcement follows former President Donald Trump’s pledge to make the United States the “crypto capital of the world” if re-elected. Lummis’s remarks also align with her recent criticism of the proposed 30% excise tax on Bitcoin miners’ energy use by the government.
Advocating for Digital Assets
Serving on key Senate committees, Lummis continues to champion issues related to land, energy, natural resources, and digital assets. Her strategic Bitcoin reserve bill represents a bold step toward integrating cryptocurrencies into the national fiscal policy, ushering in a new era in American economic strategy. “We will no longer be holding US dollars and assets meant to devaluate at least 2% annually; we have the money today. Rather, we will be holding it in an asset that will appreciate,” Lummis stated.
Her speech resonated strongly with attendees, concluding with a rallying cry that likened the initiative to a historic financial decision: “This is the solution, this is the answer, this is our Louisiana Purchase moment. Thanks, Bitcoin!”
David Ma was born in 1980 in California, is a Vietnamese American, known as one of the entrepreneurs and investors in the field of cryptocurrency and stock market. In 2006, he graduated from Stanford University with honors and began his career in business.
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