Senator Cynthia Lummis of Wyoming has started a new debate about the role of Bitcoin in national finance by suggesting that the US turn some of its gold stocks into Bitcoin. Her BITCOIN Act lays out this plan to create a strategic reserve of 1 million BTC without having any effect on the country’s bank sheet.
Lummis said that the government would not have to spend any new money if they used gold certificates that they already owned to buy Bitcoin. At the current market rate, we expect the plan to cost $90 billion. If the bill passes, the cost may increase due to increased demand for its use.
The idea aligns with the previous statements made by President-elect Donald Trump regarding the creation of a government Bitcoin hoard. Initially, Trump proposed to retain the 200,000 bitcoins confiscated as asset forfeitures. Lummis’ plan significantly broadens this concept by establishing a decentralized network for secure Bitcoin storage and mandating the holding of Bitcoin for a minimum of 20 years.
People who support Bitcoin say that its ability to go up in value could help lower the national debt over time. However, critics say Bitcoin is volatile and risky to invest in. Some individuals are uncertain about Congress’s support for the bill due to their limited knowledge about cryptocurrencies.
Even with these problems, Lummis is still hopeful. Lummis discusses the increasing presence of crypto-friendly lawmakers in Congress and the growing influence of the industry on legislative decisions. Trump’s changing views on cryptocurrencies and his desire to make the U.S. a world leader in digital assets could also help the effort.
While Congress thinks about the plan, the result could change how cryptocurrency works with the national economic strategy. It’s still not clear if the U.S. will make this big move toward Bitcoin-backed reserves, but the debate has already gotten people around the world interested.
