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- Cynthia Lummis wants the U.S. to buy 1 million Bitcoins to fight inflation and keep the dollar strong.
- The plan includes locking up this Bitcoin for 20 years, using it only to reduce national debt.
- Funding for it would come from rearranging existing Federal Reserve and Treasury budgets.
Yesterday, Senator Cynthia Lummis stepped up at the Bitcoin 2024 conference in Washington, D.C., to drop a major proposal. She has written a detailed proposal for the U.S. to set up a BTC reserve.
Her plan? To make the U.S. dollar stronger against inflation and keep the U.S. at the front of global finance. Cynthia threw down some straight talk:
“Establishing a strategic Bitcoin reserve would firmly secure the dollar’s position as the world’s reserve currency into the 21st century and ensure we remain the world leader in financial innovation.”
She pointed out the hard times folks are facing with high inflation and skyrocketing costs, saying it’s high time the U.S. banks on Bitcoin to secure a stable economic future.
America’s BTC strategy
Under Cynthia’s bill, the U.S. wouldn’t just hoard Bitcoin as a shiny new toy. This stash would be a full-blown strategy, locked down for 20 years, only to be used for chipping away at the national debt.
Cynthia is suggesting we treat BTC like we do gold or oil to keep the country running strong. The plan is to build a tight network of Bitcoin vaults run by the Treasury, with top-notch security to keep these digital assets safe.
Over time, the U.S. aims to buy up 1 million Bitcoins, which would work out to about 5% of all the Bitcoins out there. This mirrors how America handles its gold reserves.
The money to buy all this Bitcoin? It’s coming from reshuffling existing funds in the Federal Reserve and Treasury Department.
Plus, Cynthia is all about keeping Bitcoin users’ rights intact, stressing that this big government Bitcoin play won’t mess with anyone’s personal Bitcoin stash.
The senator has been busy with crypto for a while. She’s been backing Bitcoin personally and professionally for years.
Last year, she teamed up on the Cynthia-Gillibrand Responsible Financial Innovation Act, to get crypto rules just right—tough on bad actors but supportive of innovation.
In her pitch, Cynthia said crypto is not the enemy. The real trouble comes from the shady folks in the space. She’s all for letting the tech grow but wants to make sure folks are protected while it happens.
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Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Jai Hamid
Jai Hamid has been covering crypto, stock markets, technology, the global economy, and the geopolitical events that affect markets for the past 6 years. She has worked with blockchain-focused publications including AMB Crypto, Coin Edition, and CryptoTale on market analyses, major companies, regulation, and macroeconomic trends. She has attended London School of Journalism and thrice shared crypto market insights on one of Africa’s top TV networks.
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