- Cynthia Lummis also proposed to create the Bitcoin U.S. Reserve
- The reserve assumes the purchase of 5% of the total Bitcoin and would last for 20 years
- It would only be used for national debt and regulated by the U.S. Treasury Department
Main pro-crypto Republican Senator Cynthia Lummis also sees the strategic value of cryptocurrencies for the future of the U.S. economy on the global stage.
As you can read in our previous article, she has already done a lot of work regarding the creation of regulations to adopt Bitcoin in the U.S.
Now, she has taken an even more significant step and proposed the creation of the Bitcoin U.S. Reserve.
What Exactly Does Cynthia Lummis’ Bitcoin U.S. Reserve Creation Proposal Include?
The proposed legislation would authorize the purchase of about 5% of Bitcoin’s total, similar to the U.S. gold reserve.
The reserve would hold Bitcoin for 20 years, and the only authorized use would be to pay down the U.S. government debt.
The Treasury Department will manage the secure Bitcoin vaults, applying the most robust physical and cybersecurity measures.
This initiative will be funded by diversifying existing Federal Reserve and Treasury Department funds.
What Are the Goals of the Bitcoin U.S. Reserve According to Cynthia Lummis?
Cynthia Lummis shares a common view with Donald Trump on the strategic value of Bitcoin in the future economic and political position of the U.S., as you can read in our other article.
Her focus is on fighting inflation and ensuring a stable and leading U.S. position in a global financial system rapidly changing by Bitcoin and other cryptocurrencies. Her plan also focuses on the right to self-custody for private Bitcoin holders and maintains no infringement on individual financial freedoms.
“Establishing a strategic Bitcoin reserve would firmly secure the dollar’s position as the world’s reserve currency into the 21st century and ensure we remain the world leader in financial innovation. Families across Wyoming and the U.S. are struggling to keep up with soaring inflation rates and record-breaking costs while our national debt reaches unprecedented levels; now more than ever, we need to create a brighter future for generations of Americans by diversifying into Bitcoin and securing our economic future.”
-Cynthia Lummis
Conclusions
More and more political power, even if they differ in their views on certain aspects of the future of politics and economics, seem to increasingly agree that cryptocurrencies in general and Bitcoin in particular will play a key role.
Fewer and fewer major political powers are underestimating its potential and are instead eager to offer their approach to adapting crypto in the best way they see fit.
All of this should give the crypto community good signs, but it also requires keeping a close eye on the actual actions, possibly revealing non-obvious, favorable, but not for everyone, aspects of certain initiatives.
