Key Takeaways:
- Senator Cynthia Lummis has proposed a bill for the US to acquire 5% of the global Bitcoin supply to create a strategic reserve.
- The acquisition, costing around $68.1 billion, would be executed over five years and stored in diverse locations for long-term value growth.
- This initiative aligns with Lummis’ stance against a proposed excise tax on Bitcoin mining and follows Trump’s advocacy for the US to become the “crypto capital of the world.”
United States Senator Cynthia Lummis has introduced a bill proposing the US government acquire 5% of the global Bitcoin supply, approximately one million Bitcoin, to create a strategic reserve aimed at reducing national debt.
Announced at the Bitcoin 2024 conference, Lummis stated the plan would unfold over five years, costing around $68.1 billion at current Bitcoin prices.
Over five years, the United States will assemble one million Bitcoin, 5% of the world’s supply! #Bitcoin2024 pic.twitter.com/mPuqbq9RK8
— Senator Cynthia Lummis (@SenLummis) July 27, 2024
She emphasized that the reserve would be stored in geographically diverse vaults and held for at least 20 years to capitalize on Bitcoin’s potential value growth, contrasting it with the depreciation of US dollars.
The proposal was well-received by attendees and follows former President Donald Trump’s keynote address advocating for the US to become the “crypto capital of the world” if he wins the upcoming election.
If the United States buys 1 million #Bitcoin over the next 5 years, as proposed by Senator Lummis, that would take 547 Bitcoin every single day.
— Bitcoin Archive (@BTC_Archive) July 28, 2024
The current daily new issuance of Bitcoin is only 450.
That does NOT include corporate adoption, institutional investors, state… pic.twitter.com/xArlqjbpTH
This move by Lummis aligns with her recent report opposing a proposed 30% excise tax on Bitcoin mining by the Biden administration, underscoring the benefits of Bitcoin mining for the US energy grid.
About The Author
Victor Fawole, a seasoned Web3 content creator and social media influencer, excels in bringing the pulse of the crypto world to our readers.
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