At the Bitcoin 2024 conference, U.S. Senator Cynthia Lummis (R-WY) unveiled a groundbreaking proposal aimed at fortifying the U.S. dollar by establishing a strategic Bitcoin reserve. This initiative is designed to combat rising inflation and solidify America’s leadership in the evolving global financial landscape, according to Lummis.
“Creating a strategic Bitcoin reserve will secure the dollar’s status as the world’s reserve currency for the 21st century, ensuring we remain at the forefront of financial innovation,” stated Lummis. “As families across Wyoming and the nation struggle with soaring inflation and unprecedented costs amid our escalating national debt, it’s imperative to build a brighter future for upcoming generations by diversifying into Bitcoin and safeguarding our economic stability.”
The United States currently holds strategic reserves in assets like gold and petroleum critical for national security. Adding Bitcoin to this portfolio is seen as a way to bolster the dollar with a digital hard asset, maintaining the country’s global financial leadership. The proposed Bitcoin reserve would be mandated to hold its Bitcoin for 20 years, with the sole purpose of debt repayment during this period.
Key aspects of the legislation include:
– Decentralized Bitcoin Vaults: Establishing a network of secure Bitcoin vaults operated by the U.S. Department of Treasury, ensuring top-tier physical and cybersecurity for the nation’s Bitcoin holdings.
– Bitcoin Purchase Program: Implementing a program to purchase 1 million units of Bitcoin over a set period, achieving a stake of approximately 5% of the total Bitcoin supply, comparable to the U.S. gold reserves.
– Funding Diversification: Financing the initiative by diversifying existing funds within the Federal Reserve System and Treasury Department.
– Affirming Self-Custody Rights: Ensuring that the strategic Bitcoin reserve respects individual financial freedoms and does not infringe on the self-custody rights of private Bitcoin holders.
