The proposal came during a speech by the Republican representative for Wyoming at the Bitcoin 2024 Conference in Nashville on July 27.
“We can create a brighter future for generations of Americans by diversifying into Bitcoin and being the first developed nation to create a strategic reserve,” she said.
US Bitcoin Reserve
The pro-crypto politician said that such a reserve would fortify the dollar’s position as the global reserve currency.
“Establishing a strategic Bitcoin reserve would firmly secure the dollar’s position as the world’s reserve currency into the 21st century and ensure we remain the world leader in financial innovation,”
We can create a brighter future for generations of Americans by diversifying into #Bitcoin and being the first developed nation to create a strategic reserve. Read more pic.twitter.com/1cWAssvZIW
— Senator Cynthia Lummis (@SenLummis) July 27, 2024
Lummis added that families across the US are struggling to keep up with soaring inflation rates and record-breaking costs while national debt reaches unprecedented levels.
“Now more than ever, we need to create a brighter future for generations of Americans by diversifying into Bitcoin and securing our economic future.”
The legislation would establish a decentralized network of secure Bitcoin vaults operated by the Department of Treasury and implement a 1-million-unit BTC purchase program over a set period of time “to acquire a total stake of approximately 5% of total Bitcoin supply, mirroring the size and scope of gold reserves held by the United States.”
This works out to approximately 986,605 BTC worth around $67 billion at current prices.
Senator Lummis is not the first politician to suggest a Bitcoin reserve. At the same conference, Donald Trump said that, if elected, his government would keep 100% of all the BTC it holds, which would become part of its reserve strategy.
“This will serve in effect as the core of a strategic national Bitcoin stockpile,”
Trump also said that under him, “The United States will be the crypto capital of the planet and the Bitcoin superpower of the world.”
The US government currently holds 213,238 BTC worth around $14.5 billion, according to Arkham Intelligence. However, on-chain movements and the potential to liquidate it often cause market volatility.
Trump also said that if he gets elected, the “Joe Biden and Kamala Harris anti-crypto crusade will be over,” before adding, “The weaponization against your industry ends.”
BREAKING: Donald Trump announces that he will create a US government #Bitcoin strategic reserve if elected president.
This would be a stockpile of Bitcoin similar to the Strategic Petroleum Reserve.
If this happens, it could be the biggest development in crypto history. pic.twitter.com/kGnEdZ94Lx
— The Kobeissi Letter (@KobeissiLetter) July 27, 2024
Big Bitcoin Purchases Planned
Independent presidential candidate Robert F. Kennedy Jr. also pledged to sign an executive order directing the US treasury to purchase 550 bitcoins daily until the reserve holds 4 million BTC.
He aims to have the US BTC reserve in the same proportion as its gold holdings, which is currently around 19% of global reserves.
“The cascading impact from these actions will eventually move Bitcoin to a valuation of hundreds of trillions of dollars,” he added.
The Republicans are pushing for the crypto vote leading up to the election in November and the Democrats have been absent so far with presidential candidate Kamala Harris not attending the conference.