- Senator Cynthia Lummis reveals that BTC is a strategic reserve asset.
- Bitcoin will boost the US dollar and eliminate the national debt.
Bitcoin and Crypto are taking center stage as the United States prepares for the upcoming presidential elections. In recent months, Donald Trump has emerged as a pro-crypto presidential candidate, as reported earlier AMBCrypto.
The rise of political discourse around Bitcoin and cryptocurrencies is shaping the future trajectory. During the Bitcoin conference, Senator Cynthia Lummis announced a bill proposing that Bitcoin be a US strategic reserve asset.
Senator Cynthia announces the BTC Strategic Reserve Bill.
At the Bitcoin 2024 conference, U.S. Senator Cynthia Lummis announced a proposal to strengthen the dollar.
The senator proposed creating a strategic reserve of Bitcoin to support the dollar in the face of rising inflation and strengthen the United States’ position in a changing financial system.
In her proposal, she noted that,
“Establishing a strategic reserve of Bitcoin would help secure the dollar’s position as the world’s reserve currency in the 21st century and ensure that we remain the world leader in financial innovation,”
She argued that the current economic conditions are tough and inflation rates are rising. Therefore, in the face of rising inflation, it is necessary to diversify one’s investments in BTC and protect America’s economic future.
She added that the legislation would require the U.S. government to purchase 1 million Bitcoins over five years. In her statement, she added that,
“Implement a program to purchase one million units of Bitcoin over a specified period to acquire a total stake of approximately 5% of the total Bitcoin supply, reflecting the size and scope of the gold reserves held by the United States.”
BTC Holding for US Debt Management
Source: Statista
The US debt has reached a record high of $35 trillion over the past decade. In her speech, Senator Cynthia claimed that if the government invested $3.3 million into the BTC reserve, it would eliminate the debt.
According to the senator, the government can use Bitcoin to eliminate debt since the value of Bitcoin will increase over time. Therefore, Bitcoin was created to anticipate the impending fiscal and monetary crisis in the United States and the world.
BTC was intended to address the constant devaluation of fiat currency through government spending and borrowing that the United States faces today.
Thus, with BTC reserve assets, the government can reduce borrowing while individual holders avoid fiat devaluation.
What would BTC reserve mean for USD?
Source: Atlantic Council
For years, the U.S. dollar has defied predictions of collapse because it remains the dominant currency. Nearly 60% of the world’s foreign exchange reserves are denominated in dollars.
However, this share has gradually declined in recent years, due to developments in financial markets, including the rise of cryptocurrencies and geopolitical changes.
With cryptocurrencies playing a central role in the digital financial revolution, having a reserve asset in BTC will boost the dollar.
Although BTC prices experience some volatility, their value increases every year, unlike USD, which loses value due to devaluation.