Lummis introduces legislation to establish 1 million Bitcoin strategic reserve for the US
The post Lummis introduces legislation to establish 1 million Bitcoin strategic reserve for the US appeared on BitcoinEthereumNews.com.
Senator Cynthia Lummis introduced new legislation that aims to establish a Bitcoin strategic reserve for the US totaling at least 1 million BTC — 5% of the total supply. Lummis announced the new bill at the Bitcoin2024 conference on July 27 following former President Donald J. Trump’s keynote, who also vowed to make the US a Bitcoin “superpower” and ensure the government never sells the 210,000 BTC it already holds. The flagship crypto reacted positively to the announcement, reversing most of the day’s losses to trade at $68,750 as of press time, based on CryptoSlate data. Bitcoin reserve bill In her speech, Lummis detailed the plan to create a network of secure storage vaults and a purchase program aimed at transparent management of the federal government’s Bitcoin holdings. The initiative would begin by moving the 210,000 Bitcoin the US government currently holds into a Treasury-managed reserve. This reserve will accumulate 1 million BTC over five years, representing 5% of the global supply. Under the bill, the Bitcoin reserve will be held for at least 20 years and used only to reduce the country’s national debt. Lummis suggested that this strategic move could significantly cut the national debt by 2045. MicroStrategy executive chairman Michael Saylor’s presentation at the event on July 26 detailed how the US could eliminate its debt by adopting a “Bitcoin maxi” strategy. He projected that the US could accumulate $30 trillion in Bitcoin by 2045 after reducing its debt to zero by applying the most aggressive investment strategy. Saylor believes the first country to begin accumulating Bitcoin by issuing fiat currency will “win” and have the highest chance of becoming the world’s next superpower. Excess Fed reserves Lummis said her bill would not require further funding by tax payers since the government already has the money needed…
Filed under: News - @ July 27, 2024 11:16 pm