US Senator suggests buying a million bitcoin for strategic reserve

US Senator suggests buying a million bitcoin for strategic reserve
Cynthia Lummis. Image from your Senate page, divided via Wikimedia, rights: public-free.

The Pro-Bitcoin Senator Cynthia Lummis wants to make the USA a Bitcoin superpower with the Bitcoin Act. To do this, she plans to set up a new, decentralized and transparent Fort Knox.

At the Bitcoin2024 in Nashville last week not only Donald Trump spoke, but also the Republican Senator Cynthia Lummis. Lummis has been considered extremely Bitcoin-friendly for a long time, which is why it is not surprising that their Bitcoin plans are by far outperforming Trump.

Specifically, the “Bitcoin Act” she proposed exceeds all the wishes of the bitcoiners. He is a big litter – and, to be closely visible, a realistic plan for the long -term financial dominance of the USA.

Bitcoins to strengthen the financial management of the United States

The “Boosting Innovation, Technology, and Competitiveness Through Optimized Investment Nationwide Act of 2024”-in short: “Bitcoin Act of 2024”-should “build a strategic bitcoin reserve and ensure that the government’s Bitcoin stocks are managed transparently.”

According to the draft, the Senate should recognize “that the global financial landscape is developing rapidly and digital assets play a growing role in the global economy”. Bitcoin has proven resilience and has been establishing itself as a means of payment and value for a decade.

Just as “a gold reserve historically served as the cornerstone of national financial security, Bitcoin represents an asset of the digital age that is able to the financial management and safety of the United States in the global economy of 21. Century to strengthen.”

Hui – and how true. A Bitcoin reserve can-it may even have to be-the basis of future global financial importance. For this reason, Lummis calls for “the acquisition and long -term storage of substantial amounts of bitcoins by the United States.”

“A decentralized network of safe Bitcoin storage facilities”

For this purpose, a kind of new Fort Know should be formed, “a decentralized network of secure Bitcoin storage facilities, distributed over the United States.“With the help of the Ministry of Defense and Homeland Security, these deposits are to be secured with all available measures.

A “Bitcoin Purchase Program” is supposed to fill this “strategic bitcoin reserve”. The United States is supposed to be 200 for five years.Buy 000 bitcoins, transparent and market -friendly as possible, in order to finally have a million bitcoins or almost five percent of all around bitcoins. In addition, all state authorities are prohibited from selling or pledging bitcoins that are under their control, for example through seizures. Instead, as soon as they legally transferred to the United States, they are fed to the strategic reserve.

The bitcoins in the strategic reserve must be held at least 20 years. In this phase, they may not be “sold, exchanged, caught, pledged, pledged or otherwise disposed, except to let go of debt instruments.”This sentence (” … Retire Outstanding Debt Instruments “) is a bit dark.

Transparency is intended to create a system of quarterly “proof of reserve”, which verified the stocks using cryptographic methods. The Bitcoin addresses are published in reports on a website, the administrators signed with the keys.

This would make such a Bitcoin reserve the first democratically managed reserve, which is completely transparent before the sovereign. A state reserve would never have heard as much as this.

The boundary of the

Economically, this reserve would have the effect of a self -fulfilling prophecy. When the USA makes Bitcoin a strategic reserve – then Bitcoin becomes a strategic reserve. If Bitcoin has such a value for the USA that they accumulate a million Bitcoin – then Bitcoin has this value.

As a pioneer, the United States would benefit to a fabulous extent that Bitcoin becomes a new reserve unit. It would put everyone else in a kind of pressure to do it, not much differently than with gold. A financially solid nation must have gold today – and in the future, it goes to Lummi, also Bitcoin.

However, the money with which the USA is buying a million bitcoins remains something vague. The draft law mentions income from the Federal Reserve Banks as well as surpluses from gold certificates. But especially at the beginning, the United States will bring the money together, especially since it can almost create dollars at will.

But the Bitcoin Act has so far been more of a wish than a real view. The senator can bring the draft law to the congress – but at least at the moment it is very unlikely that it will be adopted. But who knows what happens, and more than about the concrete law, it is probably about moving the boundary of the Sag- and conceivable. Compared to the plans of Lummi, Trump’s proposal, the confiscated coins in the possession of the states – currently around 200.000 – to bring a strategic reserve, almost conservative.