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US Senator Cynthia Lummis announced on Saturday her intention to introduce legislation for a groundbreaking “1-million-unit Bitcoin purchase program.” This proposed initiative aims to create a strategic Bitcoin reserve to enhance the strength of the US dollar and solidify the nation’s position in the global financial system.
The program, valued at over $68 billion based on current Bitcoin prices, seeks to acquire approximately 5% of the total Bitcoin supply, mirroring the size of the US gold reserves. Lummis, a Republican senator from Wyoming, believes this move will not only bolster the dollar against inflation but also assert the US’s leadership in financial innovation.
In her statement at the Bitcoin 2024 Conference in Nashville, Tennessee, Lummis highlighted the urgent need to address soaring inflation rates and the escalating national debt. “Families across Wyoming and the US are struggling with rising costs, and it’s crucial to secure a brighter economic future by diversifying into Bitcoin,” she said.
The proposed legislation includes provisions for establishing a decentralized network of secure Bitcoin vaults operated by the Treasury Department. These vaults will be designed to ensure top-tier physical and cybersecurity for the nation’s Bitcoin holdings. Furthermore, the bill aims to protect the self-custody rights of private Bitcoin holders, ensuring that the strategic reserve will not infringe on individual financial freedoms.
Lummis, who serves on multiple Senate committees including Banking, Housing & Urban Development, Commerce, Science & Transportation, and Environment & Public Works, is known for her focus on finance and technology issues such as Bitcoin and digital assets.
Funding for the program will come from diversifying existing resources within the Federal Reserve System and the Treasury Department. The legislation stipulates that the Bitcoin reserve be held for a minimum of 20 years, with any potential use during this period restricted to paying down the national debt.
“This strategic Bitcoin reserve will act as a digital hard asset to strengthen the US dollar and ensure our nation’s financial leadership for decades to come,” Lummis stated. By establishing this reserve, the US aims to reinforce its economic stability and secure its position as a global financial powerhouse.
