PEOPLEBITCOIN

Republican lawmaker Lummis introduces Bitcoin Strategic Reserve Act: US to accumulate 1 million bitcoins within five years to address national debt

share
Republican lawmaker Lummis introduces Bitcoin Strategic Reserve Act: US to accumulate 1 million bitcoins within five years to address national debt

Republican Senator Cynthia Lummis has been teasing the "Bitcoin Reserve Bill" ahead of this year's Bitcoin conference, Bitcoin 2024, and she finally revealed it at the event. This is a plan aimed at using Bitcoin to manage the United States' national debt, proposing the establishment of a strategic Bitcoin reserve to be held in secure vaults across the country.

Big things ahead? Crypto-friendly lawmaker Cynthia Lummis rumored to be pushing for U.S. Bitcoin reserve legislation

Table of Contents

Can Bitcoin Strategic Reserves Solve National Debt?!

Congresswoman Lummis emphasized the importance of Bitcoin in a meeting, likening its potential impact to the historical Louisiana Purchase in 1803, where the United States acquired land from France. She announced that the reserves would start with 200,000 bitcoins. Former President Trump also mentioned this figure, with a goal to accumulate 1 million bitcoins within five years, accounting for 5% of the world's supply. These reserves will be held for at least 20 years, primarily to reduce national debt.

How Bitcoin Can Solve National Debt

Lummis emphasized that Bitcoin strategic reserves could significantly reduce national debt by 2045. She cited comments from MicroStrategy founder Michael Saylor, stating that accumulating three million bitcoins could potentially eliminate national debt entirely, making the U.S. a debt-free nation.

Michael Saylor also mentioned during this conference that Bitcoin could be worth at least 3 million US dollars by 2045.

National-Level Bitcoin Financial Strategy

Lummis stated that the bill outlines that funding will come from asset seizures and excess reserves held by the Federal Reserve. Rather than holding these reserves in devaluing U.S. dollars, it is suggested to convert them into Bitcoin. Historically, Bitcoin has had an annual growth rate of 55%, providing a good solution for economic stability.