Senator Cynthia Lummis has introduced a bill proposing the establishment of a “strategic Bitcoin reserve” by the U.S. government, which would involve purchasing 5% of the world’s Bitcoin supply to be held for at least 20 years.
“It can be used for one purpose, to reduce our debt,” Lummis stated during her keynote speech at the Bitcoin 2024 conference on July 27 in Nashville, Tennessee.
The plan, if enacted, would unfold over five years, with the government acquiring approximately one million Bitcoin, representing 5% of the total supply of 21 million Bitcoin.
At the time of publication, Bitcoin was valued at $68,105, meaning the cost of purchasing one million Bitcoin would be around $68.1 billion, based on CoinMarketCap data.
“This Bitcoin Reserve that we are going to create will start with the 210,000 Bitcoin that President Trump just mentioned and pull it into a reserve, stored in geographically diverse vaults, and that’s only the beginning,” Lummis explained.
She emphasized a shift in the nature of assets held by the government, saying, “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.”
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Lummis, a prominent advocate in the crypto space, received enthusiastic support from the conference attendees, concluding her speech with, “This is the solution, this is the answer, this is our Louisiana purchase moment. Thank you, Bitcoin!”
Her proposal came on the heels of a keynote address by former President Donald Trump, who declared his intention to position the U.S. as the “crypto capital of the world” if re-elected in November.
Lummis’s speech also followed her recent critique of President Joe Biden’s administration’s proposed 30% excise tax on the energy used by Bitcoin miners.
On July 23, she released a report titled “Powering Down Progress: Why A Bitcoin Mining Tax Hurts America,” which outlined the advantages of Bitcoin mining infrastructure for the U.S. energy grid.
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