The post Senator Cynthia Lummis Proposes Fed Gold Sale To Buy 1M Bitcoin appeared on BitcoinEthereumNews.com.

Republican Senator Cynthia Lummis of Wyoming is proposing a plan to sell part of the Federal Reserve’s gold holdings to fund the purchase of one million Bitcoin for a national strategic reserve. Cynthia Lummis, an ally of President-elect Donald Trump, introduced this concept as a way to increase federal Bitcoin holdings without adding to the national debt. This move comes amid Bitcoin’s recent price rally to an all-time high of $93,500 following Trump’s election win. Cynthia Lummis Proposes Fed Gold Sale To Buy 1M Bitcoin According to a Bloomberg report, Senator Lummis plans to introduce legislation to sell a portion of the Federal Reserve’s gold and use the proceeds to buy Bitcoin. Her bill, known as the BITCOIN Act (Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide), would authorize the acquisition of up to one million Bitcoin. Cynthia Lummis estimates this would cost around $90 billion based on current prices, but the sum could rise if the market anticipates the government’s involvement. This move comes despite recent criticism by BTC critic Peter Schiff who has noted the reserve would be a bad idea for the US. Despite that, Lummis believes that using existing gold reserves would allow the government to build a Bitcoin stockpile without increasing the national deficit. “We already have the financial assets in the form of gold certificates to convert to Bitcoin,” Lummis said in an interview. She noted that since the Federal Reserve’s gold holdings are valued at a statutory price far below their market value, there is sufficient gold to cover the purchase without risking financial stability. Potential Obstacles and Skepticism Over Bitcoin’s Stability Despite support from some pro-crypto lawmakers, Lummis’ proposal is expected to face challenges. The bill currently lacks co-sponsors, and there is widespread skepticism about Bitcoin’s volatility. Jennifer J. Schulp, director…

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Filed under: News - @ November 15, 2024 6:24 am