Cynthia Lummis, the U.S. Senator from Wyoming, has put forth an ambitious proposal to acquire one million Bitcoin utilizing a fraction of the Federal Reserve’s gold reserves. This initiative seeks to enhance the national strategic reserve while avoiding any increase in the national debt.
What Are the Key Aspects of Lummis’s Proposal?
Lummis, known for her support of former President Donald Trump, argues that this strategy will significantly boost the federal Bitcoin holdings. This proposal comes during a notable surge in Bitcoin’s price, which reached $93,500 following Trump’s election win.
How Much Will the Operation Cost?
According to reports from Bloomberg, Lummis plans to introduce legislation enabling the purchase of Bitcoin funded by the sale of a portion of the Federal Reserve’s gold assets. The proposed BITCOIN Act (Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide) aims to allow the government to acquire as much as one million Bitcoin.
Lummis estimates the cost of this operation to be around $90 billion at current market prices, although she acknowledges that this figure might rise if trading markets react to potential government involvement. She asserts that leveraging gold reserves would permit stockpiling of Bitcoin without incurring additional debt.
- This plan could significantly enhance federal Bitcoin reserves.
- Utilizing gold assets might prevent increasing national debt.
- The estimated cost could escalate based on market reactions.
The proposal aims to position Bitcoin as a strategic asset, potentially reshaping how the government interacts with digital currencies and financial reserves. Lummis firmly believes in the viability of converting gold certificates into Bitcoin, stating, “It is possible to convert our financial assets in the form of gold certificates into Bitcoin.”