United States Senator Cynthia Lummis has published the official strategic Bitcoin Reserve legislation. Noteworthy, the framework is aimed at encouraging transparency as it concerns the management of the Federal government’s Bitcoin holdings. This move comes amidst the recent shifting of more than $2 billion in BTC in the government’s custody.

Potential Impact of a Strategic Bitcoin Reserve Legislation

A few days ago, the United States National Debt hit $35 trillion, marking an All-Time High (ATH). To this challenge which is confounding the country, Sen. Lummis suggested the adoption of a strategic Bitcoin reserve as backing for the USD.  Ultimately, the aim is to protect the dollar’s place as a world currency and strengthen the American economic condition through the inclusion of this cryptocurrency as a financial asset.

Therefore, this latest introduction of a legislation is a follow-up to her BTC reserve proposal at the Bitcoin Conference. She titled it the Boosting Innovation, Technology and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act in the U.S. Senate

“Bitcoin is transforming not only our country but the world and becoming the first developed nation to use Bitcoin as a savings technology secures our position as a global leader in financial innovation. This is our Louisiana Purchase moment that will help us reach the next financial frontier,” the Wyoming Senator wrote.

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These conversations are mounting as potential interest rate cut lurk around. Markedly, it is not certain that Sen. Lummis’ proposal will be passed by the US Congress but presidential candidates Donald Trump and Robert F. Kennedy have shown their support to the legislation.

Bitcoin Reserve Proposal Gains Support

As pro-Bitcoin politicians, Donald Trump and RFK has said they will support the Bitcoin Reserve initiative.

Precisely, the Republican presidential candidate is certain that the decision to adopt a strategic reserve will translate to economic stability for the United States. Also, some market experts agree that such a designation would represent a significant shift in the U.S. financial strategy.

Crypto commenters on X strongly believes that this could shift the global economic paradigm. It could urge other nations to secure their own Bitcoin position. Similarly, Steven McClurg, CoinShares’ Head of Digital Assets, thinks incorporating BTC into a reserve could address issues stemming from inflation and the current lack of a monetary standard in the U.S.

However, McClurg highlighted that it is pertinent to address the U.S. deficit and control spending before thinking of a Bitcoin reserve.

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The post Bitcoin Reserve Bill Published By Senator Cynthia Lummis appeared first on CoinGape.

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Filed under: News - @ July 31, 2024 11:10 pm