U.S. Senator Cynthia Lummis has announced plans to establish a strategic Bitcoin reserve, aiming to strengthen the U.S. dollar and address the national debt.
The proposal suggests that the U.S. government acquire approximately 1 million bitcoins over five years, representing about 5% of the total Bitcoin supply.
The proposed reserve would be managed by the U.S. Treasury through a decentralized network of secure Bitcoin vaults, ensuring high levels of physical and cybersecurity.
Senator Lummis emphasized that the Bitcoin holdings would be retained for a minimum of 20 years, with the primary purpose of reducing the national debt.
This initiative has garnered bipartisan support, with over 2,200 letters sent to U.S. Senators within 48 hours of the bill’s introduction, urging co-sponsorship.
The proposal reflects a growing interest among policymakers in integrating digital assets into national financial strategies.
Critics have raised concerns about Bitcoin’s volatility and its suitability as a reserve asset.
However, proponents argue that Bitcoin’s finite supply and decentralized nature make it a valuable hedge against inflation and economic instability.
The introduction of the Bitcoin Strategic Reserve bill marks a significant step in the U.S. government’s exploration of digital currencies as tools for economic policy. The proposal’s progress will be closely monitored by both financial markets and the cryptocurrency community.
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