- Senator Lummis suggests a $73B Bitcoin reserve to tackle the $35T US debt, aiming to boost the dollar’s strength worldwide.
- The US aims to buy one million Bitcoins, boosting long-term value and economic stability amid inflation and rising costs.
- Lummis’s bill challenges Biden’s Bitcoin mining tax, showcasing how mining actually supports and strengthens the US energy grid.
The debt balance of the United States of America is at a historical high of $35 Trillion. Cynthia Lummis has devised a tactful way of solving this problem among the Wyoming senators. Lummis suggested having a plan for a BTC reserve at the Bitcoin 2024 conference in Washington, D.C., as a means of fortifying the green fold and the overall stability of the country’s economy.
Proposal for Bitcoin Acquisition
The idea called for the US government to purchase one million Bitcoins or 5% of all Bitcoins in circulation. At the current price of $66,663 for Bitcoin, this acquisition will cost you about $73 billion.
Its goal is to establish a strategic reserve under the US Department of Treasury’s management. The reserve would be kept in safe, geographically dispersed vaults, offering a steady stream of income that increases in value with time.
Lummis also underlined the significance of using all of the resources at one’s disposal to fight growing inflation and the rising expense of life. She maintained that owning Bitcoin delivers substantial long-term value growth in contrast to traditional assets that lose value every year. This audacious decision to invest in Bitcoin instead of US dollars is meant to bolster the dollar’s standing internationally.
Reception and Implementation Plan
The attendees of the Bitcoin 2024 conference embraced Lummis’s suggestion. Calling the project a “Louisiana Purchase moment,” she emphasized its historical significance. If accepted, the government would progressively buy up the Bitcoins over the course of five years.
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Along with fortifying the US dollar, Lummis’s bill seeks to preserve the dollar’s standing as a global reserve currency. She suggested that the Treasury Department establish a decentralized network of safe Bitcoin vaults. This method guarantees the security and accessibility of the strategic reserve.
Complementary Measures and Long-Term Vision
Lummis’s idea is further supported by her recent report criticizing the Biden administration’s planned 30% excise tax on Bitcoin miners. According to the article “Powering Down Progress: Why A Bitcoin Mining Tax Hurts America,” the US electricity system benefits from the infrastructure used for Bitcoin mining.
Lummis’s innovative solution to the US national debt is the establishment of a strategic Bitcoin reserve. The government wants to defend the US dollar’s standing abroad, boost economic stability, and invest in Bitcoin. This creative approach is indicative of Lummis’s pro-crypto position and dedication to using digital resources for the good of the country.
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