United States Senator Cynthia Lummis has introduced a “strategic Bitcoin reserve” bill proposing that the US government buy 5% of the world’s Bitcoin supply and hold it for at least 20 years.

“It can be used for one purpose, to reduce our debt,” Lummis declared during her keynote speech at the Bitcoin 2024 conference on July 27 in Nashville, Tennessee.

Lummis explained that, if passed, the plan will be implemented over five years, with the US government acquiring one million Bitcoin or roughly 5% of the total supply of 21 million Bitcoin.

With Bitcoin priced at $68,105 at the time of publication, purchasing one million Bitcoin would cost roughly $68.1 billion, according to CoinMarketCap data.

“This Bitcoin Reserve that we are going to create will start with the 210,000 Bitcoin that President Trump just mentioned and pull it into a reserve, stored in geographically diverse vaults, and that’s only the beginning,” Lummis stated.

“We have the money now, but we will no longer be holding it in US dollars and assets that are designed to debase at least 2% per year, we’ll be holding it in an asset that will grow in value,” she added.

Lummis is a popular figure in the crypto industry

Lummis, who is well-regarded in the crypto industry for her pro-crypto stance, received a positive reaction from the Bitcoin 2024 attendees as she yelled, “This is the solution, this is the answer, this is our Louisiana purchase moment. Thank you, Bitcoin!"

Her speech came immediately after the highly anticipated keynote from former US President and current Republican Party candidate Donald Trump. Trump announced his intent to make the US the "crypto capital of the world" if elected in November.

It comes only days after Lummis released a report arguing against President Joe Biden’s administration’s proposed 30% excise tax on the energy consumed by Bitcoin miners.

On July 23, Lummis released a report titled “Powering Down Progress: Why A Bitcoin Mining Tax Hurts America,” highlighting the benefits of the critical mining infrastructure to the US energy grid.

Source : Cointelegraph - Jul 28, 2024