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During the Bitcoin 2024 conference in Nashville on July 27, US Senator Cynthia Lummis proposed a groundbreaking bill for the U.S. government to purchase 5% of the world’s Bitcoin supply and hold it for at least 20 years.
She explained that it could be used to reduce the debt and stated “this is the solution” on stage after Donald Trump spoke and endorsed the idea of a bitcoin reserve.
Bitcoin Strategic Reserve Bill, Officially Introduced
In the latest development, on July 31, the Senator officially introduced the Bitcoin Strategic Reserve bill that would direct the US government to start a reserve fund for the scarce decentralized asset.
The bill would establish a “decentralized network of secure Bitcoin vaults” under the control of the United States Treasury. It also directs lawmakers and bureaucrats to enact strict cybersecurity parameters and other physical security measures to ensure that Bitcoin funds are not stolen.
The Wyoming senator also released a statement about the historic proposal stating, “As families across Wyoming struggle to keep up with soaring inflation rates and our national debt reaches new and unprecedented heights, it is time for us to take bold steps to create a brighter future for generations to come by creating a strategic Bitcoin reserve.”
The Bill Highlights Bitcoin’s Advantages
The bill stated, “Just as gold reserves have historically served as a cornerstone of national financial security, Bitcoin represents a digital-age asset capable of enhancing the financial leadership and security of the United States in the 21st-century global economy.”
“The acquisition and long-term storage of substantial quantities of Bitcoin by the United States can strengthen the financial condition of the United States, providing a hedge against economic uncertainty and monetary instability,” it further stated.
The bill also underscored that diversification of the national assets of the United States to include Bitcoin can enhance financial resilience and position the United States at the forefront of global financial innovation.
Politicians Support For The Bill
Senator Lummis’ ambitious plan has been hinted at and echoed by politicians like RFK Jr. and Donald Trump.
However, shortly after Trump promised not to sell any of the US Bitcoin holdings if elected, the government transferred 29,800 Bitcoin, valued at roughly $2 billion, to an unmarked wallet address. Peter Schiff stated that Trump should have kept his intention a secret until he was actually in office, as the Biden administration is wise to his plan, and will make sure to sell every satoshi before Trump takes office.