US Senator Cynthia Lummis has renewed her call for a Bitcoin reserve to help alleviate the US national debt, following the Treasury Department’s announcement that the gross national debt exceeded $35 trillion for the first time.
This figure marks a dramatic increase from $907 billion four decades ago, according to Fiscal Data.
On Tuesday July 30, Lummis highlighted the urgency of the situation on X, stating,
“A strategic Bitcoin reserve could halt this runaway train and assist in reducing the national debt for future generations.”
According to a report published last week, Lummis has been quietly developing a bill requiring the Federal Reserve to maintain Bitcoin as a strategic reserve asset. At the Bitcoin 2024 conference over the weekend, the Senator detailed this proposal for a Bitcoin reserve, which would involve the U.S. government acquiring 1 million Bitcoin over five years, to be held for at least two decades.
Lummis argued that such a reserve would
“firmly secure the dollar’s position as the world’s reserve currency.”
She highlighted the pressing economic challenges, stating,
“Families across Wyoming and the US are grappling with soaring inflation and record costs while our national debt reaches unprecedented levels. We need to create a brighter future for Americans by diversifying into Bitcoin and securing our economic future.”
Senator Lummis isn’t alone in seeing Bitcoin’s potential. Former VanEck advisor Gabor Gurbacs sparked debate on social media recently by suggesting that the Federal Reserve could adopt Bitcoin as a hedge against its own policies.
Gurbacs argued that Bitcoin could diversify the Fed’s holdings and protect against inflation and monetary instability caused by its policies. He highlighted that unlike U.S. Treasuries, which can be printed at will, Bitcoin has a fixed supply. Gurbacs framed the Fed’s potential Bitcoin adoption as a self-imposed check on its monetary power, creating a counterbalance to its ability to expand the money supply.
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