Senator Lummis recently proposed a groundbreaking idea during a speech at the Bitcoin 2024 Conference in Nashville. She suggested that the US should create a $67 billion Bitcoin reserve to back the USD. This would make the US the first developed nation to establish such a strategic reserve.
Lummis believes that diversifying into Bitcoin and creating a strategic reserve could lead to a brighter economic future for generations of Americans. She highlighted the importance of fortifying the dollar’s position as the global reserve currency through this initiative.
The proposed legislation would involve setting up a decentralized network of secure Bitcoin vaults operated by the Department of Treasury. Additionally, a 1-million-unit BTC purchase program would be implemented over a specific period. This program aims to acquire approximately 5% of the total Bitcoin supply, which is equivalent to around $67 billion at current prices.
Interestingly, Senator Lummis is not alone in her support for a Bitcoin reserve. Former President Donald Trump also expressed his plans to create a strategic national Bitcoin stockpile if elected. He envisions the US becoming the crypto capital of the world under his leadership.
Moreover, independent presidential candidate Robert F. Kennedy Jr. pledged to sign an executive order directing the US treasury to purchase 550 bitcoins daily until the reserve holds 4 million BTC. This ambitious goal aims to align the US BTC reserve with its gold holdings, which currently represent around 19% of global reserves.
As the US approaches the upcoming election in November, the Republicans are actively courting the crypto vote with their bold proposals. On the other hand, the Democrats, including presidential candidate Kamala Harris, have been relatively quiet on this front.
Overall, the idea of a $67 billion Bitcoin reserve to back the USD marks a significant development in the realm of cryptocurrency and national economic strategies. It remains to be seen how this proposal will unfold and whether other countries will follow suit in integrating Bitcoin reserves into their financial systems.