thecryptobasic.com
Republican Senator Cynthia Lummis has insinuated that the US’s entrance into Bitcoin could scare rival countries like China and Russia.
Senator Lummis’ impeccable support for Bitcoin and digital assets has been an inspiration to lawmakers globally. Her Bitcoin Act bill has spurred legislative members in other countries to push for the adoption of the premier asset as a strategic reserve.
The staunch proponent delivered another Bitcoin masterclass speech on Tuesday. In a Bankless interview, Lummis called for the global adoption of the pioneering asset instead of an arms race for weapons.
Bitcoin Is a Secured Store of Value
The Republican senator suggested a paradigm shift in what countries view as a secured store of value. According to her, nations could evolve from heavily investing in military facilities to buying into an asset with the intrinsic qualities of an economic hedge.
She speculated on the idea of the United States purchasing Bitcoin and causing concern for nations like China and Russia, prompting them to start buying Bitcoin as well, and resulting in a competitive focus on the cryptocurrency rather than on weapons.
The Republican senator believes that Bitcoin is a reputable store of value, with this belief motivating her to propose global adoption. Her Bitcoin Act deal suggests the US acquire 1 million bitcoins over five years as a strategic reserve asset.
Moreover, she noted that the US can decide not to raise new capital for the acquisition. The senator proposed selling some of the country’s gold stockpile for the asset, an idea MicroStrategy’s Michael Saylor once teased.
Strategic Bitcoin Bill Drafted
Meanwhile, the Bitcoin Policy Institute has introduced an executive order to create a Bitcoin reserve in the United States. The agency filed the order under the Exchange Stabilization Fund (ESF) from the Treasury.
The draft proposes to create a US stockpile pending Donald Trump’s approval upon inauguration. Under the provision, the Treasury Secretary will ensure the Strategic Bitcoin Reserve (SBR) creation, allocating $521 billion to the course.
Notably, this draft differs from Senator Lummis’ Bitcoin Act. The means would serve as an executive order to create the stockpile while the Senate deliberates on the Bitcoin bill.