Senator Lummis Proposes Strategic Bitcoin Reserve to Reduce National Debt

United States Senator Cynthia Lummis has introduced a groundbreaking bill proposing a strategic Bitcoin reserve for the US government. Speaking at the Bitcoin 2024 Conference in Nashville, Tennessee, Lummis suggested that the government acquire 5% of the world’s Bitcoin supply and hold it for at least 20 years, using it to reduce national debt.

“This is the solution, this is the answer, this is our Louisiana purchase moment, thank you Bitcoin!” Lummis declared passionately.

The plan, if approved, will be executed over five years, aiming to amass one million Bitcoin, or approximately 5% of the total 21 million Bitcoin supply. With Bitcoin priced at $68,105 at the time, this purchase would amount to around $68.1 billion. Lummis highlighted that the reserve would start with the 210,000 Bitcoin mentioned by former President Trump, stored in geographically diverse vaults.

Lummis emphasized the financial shift, stating, "We have the money now, but we will no longer be holding it in US dollars and assets that are designed to debase at least 2% per year, we'll be holding it in an asset that will grow in value." Her pro-crypto stance was met with enthusiasm from the conference attendees.

The senator's announcement followed a keynote by Donald Trump, who pledged to make the US the global crypto capital if elected. This comes shortly after Lummis released a report on July 23, criticizing the Biden administration’s proposed 30% tax on Bitcoin mining energy consumption, and underscoring the benefits of Bitcoin mining infrastructure to the US energy grid.