Senator Cynthia Lummis has said that the Strategic Bitcoin Reserve may function a monetary safeguard and a method to handle previous generations’ fiscal mismanagement.
Lummis believes such a reserve may assist rectify the financial burdens positioned on youthful generations, notably the nationwide debt.
Senator Lummis’ Bitcoin Reserve Push
In a latest interview, Lummis defined {that a} Strategic Bitcoin Reserve may minimize the present debt in half. In 2025, the US nationwide debt is over $36 trillion.
Lummis urged the US may leverage Bitcoin’s appreciation to help the US greenback because the world’s reserve foreign money. She considers it essential for sustaining financial stability and favorable commerce benefits.
“It ensures that the US dollar is the most accepted currency worldwide, and then with Bitcoin underpinning it and being also a global means of exchange and store of value, gives us that double support for the US dollar,” Lummis mentioned.
As well as, she referenced Bitcoin’s historic annual progress charge of roughly 55%. Nevertheless, she acknowledged that this charge will steadily decline. In accordance with Lummis, it may lower to 45%, 35%, 25%, and so forth over the subsequent 20 years.
Regardless of a declining progress curve, the Senator believes a $1 million Bitcoin reserve as we speak might be price roughly half of the US nationwide debt in 20 years. She additionally famous that Robert F. Kennedy Jr. used an identical mannequin. Subsequently, Lummis projected {that a} bigger reserve may doubtlessly remove the whole debt.
“I look at a Strategic Bitcoin Reserve and its ability to grow and help me right the wrongs that my generation did by driving us into this terrible debt. It’s the only vehicle I see that can have that consequential effect,” she mentioned.
On July 31, 2024, Senator Lummis launched the BITCOIN Act, proposing the institution of a 1 million Bitcoin reserve. Final month, she additionally turned the primary chair of the Senate Banking Subcommittee on Digital Property.
In the meantime, help for a Strategic Bitcoin Reserve is rising. On the state degree, 15 states have publicly endorsed it, Satoshi Motion Fund’s founder, Dennis Porter, shared on X (previously Twitter).
At the least 11 states have launched payments to ascertain a Strategic Bitcoin Reserve. Moreover, Arizona and Utah have authorised their proposals by means of committees.
In accordance to Porter, greater than 3,300 letters have been despatched to Members of Congress advocating for Bitcoin to be acknowledged as a part of a strategic stockpile. This comes after President Donald Trump signed an govt order to ascertain a “national digital asset stockpile” with out specifying Bitcoin.
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