In a speech at the Bitcoin 2024 Conference in Nashville, Republican representative Cynthia Lummis proposed the creation of a strategic reserve of Bitcoin for the United States. She believes that diversifying into Bitcoin and establishing this reserve would secure the dollar’s position as the global reserve currency and ensure the country remains a leader in financial innovation. Lummis highlighted the struggles American families are facing with inflation and debt and emphasized the need for a brighter economic future through Bitcoin.
The proposed legislation would involve the Department of Treasury operating a decentralized network of secure Bitcoin vaults and implementing a 1-million-unit BTC purchase program to acquire approximately 5% of the total Bitcoin supply, similar to the size of the gold reserves held by the US. This would amount to around 986,605 BTC valued at $67 billion at current prices. Lummis is not the only politician advocating for a Bitcoin reserve, as Donald Trump also expressed plans to create a US government Bitcoin stockpile if he were elected, aiming to make the country the “crypto capital of the planet.”
Trump’s proposal includes keeping 100% of the BTC the government holds and ending the “anti-crypto crusade” under the Biden-Harris administration. The current US government holds 213,238 BTC worth $14.5 billion, and Trump’s plan could potentially have a significant impact on the crypto market. Additionally, independent presidential candidate Robert F. Kennedy Jr. has pledged to direct the US treasury to purchase 550 bitcoins daily until the reserve reaches 4 million BTC, aligning it with the country’s gold holdings. These actions could potentially lead to a massive increase in Bitcoin’s valuation.
With the November elections approaching, Republicans are actively courting the crypto vote while the Democrats have yet to make their stance known. Presidential candidate Kamala Harris did not attend the Bitcoin 2024 Conference, indicating a lack of engagement with the crypto community. The push for a US Bitcoin reserve and the potential impact it could have on the global economy are significant topics that will likely continue to be debated leading up to the election. The idea of the US becoming a Bitcoin superpower and the implications of such a move are generating interest and speculation within the crypto community.
