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Key Points: U.S. Senate Bitcoin Reserve Strategy unveiled as debt reduction method. Proposal suggests Bitcoin as strategic reserve asset over 20 years. Lummis’s initiative could involve 5% of Bitcoin’s entire supply. U.S. Senator Cynthia Lummis from Wyoming proposed the “Bitcoin Reserve Strategy Bill” on April 20th, 2025, aiming to use Bitcoin as a national reserve asset. This proposal suggests buying Bitcoin akin to gold certificates in 1974. Lummis’s proposal could halve the national debt over 20 years without using taxpayers’ money. It reflects a strategic shift in asset accumulation by introducing Bitcoin as a core reserve. U.S. Government Aims to Acquire $20 Billion in Bitcoin Cynthia Lummis’s proposal centers on making Bitcoin a reserve asset, with the U.S. government potentially acquiring $20 billion worth in the first year. Lummis highlights Bitcoin’s comparability to gold due to its scarcity and decentralization, positioning it as a “digital gold”. This proposal aims to create significant market implications by locking up 5% of Bitcoin’s total supply. Market sentiment remains watchful as Lummis’s and state-level initiatives gain attention. Texas has already passed a bill, potentially setting precedence (Texas leads U.S. in allocating public funds to cryptocurrency). Lummis’s proposal could transform Bitcoin held by government entities, marking an institutional adoption milestone. “Bitcoin has proven itself,” noted Texas Senator Charles Schwertner, affirming its volatility resilience. “I know people who felt that it was best to take the most immutable, the most decentralized, the most scarce asset and treat it differently than some of the assets that don’t have those same assets of digital gold that Bitcoin has … as far as a strategic reserve goes, limit it to Bitcoin … that’s the right conclusion,” said Cynthia Lummis, U.S. Senator. Bitcoin Price Surges to $85,162.90 Amid Reserve Discussions Did you know? In 1974, the U.S. government’s accumulation of…

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Filed under: News - @ April 20, 2025 1:11 am