Senator Lummis Proposes Bitcoin Reserve to Address US National Debt

US Senator Cynthia Lummis has reiterated her proposal for establishing a Bitcoin reserve to help reduce the national debt. This suggestion comes in the wake of the Treasury Department’s revelation that the US gross national debt has surpassed $35 trillion for the first time, a stark increase from $907 billion four decades ago.

A Strategic Bitcoin Reserve

Lummis believes that creating a strategic Bitcoin reserve could halt the escalation of the national debt and aid in paying it down for future generations. She announced on X, formerly Twitter, “A strategic Bitcoin reserve could stop this runaway train and help pay down the national debt for our future generations.”

Reinforcing the Dollar’s Global Dominance

Lummis has been quietly developing a bill that would require the Federal Reserve to maintain Bitcoin as a strategic reserve asset. She publicly unveiled the details of this bill at the Bitcoin 2024 conference. The proposal suggests acquiring 1 million Bitcoin over five years for a government reserve, with the Bitcoin held for at least two decades. The Fed and Treasury would reallocate existing funds to finance the acquisition.

Lummis argues that such a reserve would “firmly secure the dollar’s position as the world’s reserve currency,” enhancing its global dominance. She emphasized the need for economic diversification, especially in light of soaring inflation and record-breaking costs affecting American families.

Economic Future and Inflation Concerns

“Families across Wyoming and the US are struggling to keep up with soaring inflation rates and record-breaking costs while our national debt reaches unprecedented levels,” Lummis stated. “Now more than ever, we need to create a brighter future for generations of Americans by diversifying into Bitcoin and securing our economic future.”

Trump’s Stance on Seized Bitcoin Assets

At the same conference, Republican presidential nominee Donald Trump expressed his views on Bitcoin. Although he did not commit to an official Bitcoin strategic reserve, he promised to retain the existing Bitcoin holdings accumulated through asset seizures.