U.S. Senator Cynthia Lummis has put forward a bold idea to create a Bitcoin national strategic reserve by selling some of the Federal Reserve’s gold instead of using government funds. In a recent interview with Bloomberg, Lummis suggested that converting some of the Federal Reserve’s gold certificates into Bitcoin could be a viable option.
This proposal is part of President-elect Donald Trump’s larger plan to increase the country’s Bitcoin holdings. The goal is to hold onto the cryptocurrency for at least twenty years, with the hope that its value will appreciate significantly. This increase in value could potentially help reduce the national debt, which currently stands at around $36 trillion.
Despite some skepticism within the crypto community, with a poll on Polymarket showing only a 30% chance of success, there is growing support for the idea in Congress. Many pro-crypto legislators have recently been elected, indicating that the proposed bill may have a good chance of passing in the future.
President-elect Trump has made promises to the crypto community, including creating a Bitcoin strategic national reserve and positioning the United States as a leader in the crypto world. He has also pledged to replace the current SEC Chairman, Gary Gensler, with someone who is more supportive of digital assets on his first day in office.
In addition, Trump has vowed to pardon Ross Ulbricht, the founder of Silk Road who is currently serving a 40-year sentence without the possibility of parole. These commitments have contributed to a surge in the price of Bitcoin, which has increased by 12% in the past week and reached an all-time high of $93,477 on November 13th. The cryptocurrency’s market capitalization has also risen to $1.7 trillion.
Overall, the future of Bitcoin in the United States looks promising, with politicians and policymakers exploring innovative ways to incorporate the cryptocurrency into the country’s financial strategy. By potentially selling Federal Reserve gold to acquire more Bitcoin, the U.S. could be taking a significant step towards embracing the digital currency revolution.