YEREVAN (CoinChapter.com) — Senator Cynthia Lummis (R-WY) introduced a bill suggesting the U.S. government purchase 5% of the world’s Bitcoin supply. She presented this “strategic Bitcoin reserve” bill at the Bitcoin 2024 conference in Nashville, Tennessee.
Senator Proposes BTC Purchase to Slash National Debt
During her speech on July 27, Lummis said the bill aims to reduce national debt.
“It can be used for one purpose, to reduce our debt,”
she stated. The plan involves acquiring one million Bitcoin over five years. At Bitcoin’s price of $67,991 at the time, this would cost roughly $68 billion.
Lummis stressed the benefits of holding Bitcoin over U.S. dollars.
“We have the money now, but we will no longer be holding it in U.S. dollars and assets that are designed to debase at least 2% per year. We’ll be holding it in an asset that will grow in value,”
she added.
Lummis Hails Bitcoin Plan as ‘Louisiana Purchase Moment’ at Bitcoin 2024
Lummis compared the proposal to the Louisiana Purchase.
“This is the solution, this is the answer, this is our Louisiana purchase moment. Thank you, Bitcoin!”
she exclaimed. The Bitcoin 2024 attendees responded positively.
The Bitcoin Reserve will start with 210,000 Bitcoin, mentioned by former President Donald Trump in his earlier speech. These Bitcoins will be stored in geographically diverse vaults to protect the asset.
Lummis Defends Bitcoin Amid Trump’s Bold Crypto Vision
Senator Lummis, a popular figure in the crypto industry, spoke after Trump’s keynote speech. Trump announced his intent to make the U.S. the “crypto capital of the world” if elected in November.
This proposal follows Lummis’s recent report against President Joe Biden’s administration’s proposed 30% tax on Bitcoin mining energy consumption. The report, titled “Powering Down Progress: Why A Bitcoin Mining Tax Hurts America,” highlights Bitcoin mining’s benefits to the U.S. energy grid.
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