Senator Lummis proposed a $67B strategic bitcoin reserve to back the dollar

The idea came from a speech by the Wyoming Republican at the Bitcoin 2024 conference in Nashville on July 27.

“By diversifying into bitcoin and becoming the first developed nation to create a strategic reserve, we can create hope for generations of Americans,” she said.

US Bitcoin Reserve

A pro-crypto politician said such a reserve would strengthen the dollar's position as the global reserve currency.

“Establishing a strategic bitcoin reserve will cement the dollar's position as the world's reserve currency in the 21st century and ensure we are a world leader in financial innovation.”

By sharing in #Bitcoin and becoming the first wealthy nation to create a strategic reserve, we can create hope for future generations of Americans. Read more⬇️⬇️ pic.twitter.com/1cWAssvZIW

— Senator Cynthia Lummis (@SenLummis) July 27, 2024

Loomis added that families across America are struggling to keep up with rising inflation and record-breaking spending as the national debt reaches unprecedented levels.

“Now more than ever, we must create hope for the next generation of Americans by converting to Bitcoin and securing our economic future.”

The law would create decentralized Bitcoin vaults operated by the Treasury and implement a 1-million-unit BTC purchase program over a period of time “to obtain a share of approximately 5% of the total Bitcoin supply, reflecting the size and scope of gold reserves held by the United States.”

This works out to about 986,605 BTC, which is roughly $67 billion at current prices.

Senator Lummis is not the first politician to propose a Bitcoin reserve. At the same conference, Donald Trump said that if elected, his government would own 100% of BTC as part of its reserve strategy.

“This will serve as an integral part of the Strategic National Bitcoin Reserve.”

Under him, Trump said, “the United States will be the capital of the planet and the Bitcoin superpower.”

The US government currently holds 213,238 BTC worth about $14.5 billion, according to Arkham Intelligence. But movements on the chain and the potential to break it often cause market volatility.

If Trump is elected, “the anti-crypto crusade of Joe Biden and Kamala Harris will end,” he said, adding that “the weapon against your industry will end.”

BREAKING: US government announces #Bitcoin strategic reserve if Donald Trump is elected president.

This will be a Bitcoin reserve similar to the Strategic Petroleum Reserve.

If this happens, it could be the biggest development in crypto history. pic.twitter.com/kGnEdZ94Lx

— Kobeissi Letter (@KobeissiLetter) July 27, 2024

Large Bitcoin purchases are planned

Independent presidential candidate Robert F. Kennedy Jr. also pledged to sign an executive order directing the US Treasury to buy 550 bitcoins a day until it holds 4 million BTC.

He wants US BTC reserves to be the same size as his gold holdings, which currently make up 19% of global reserves.

“The ripple effect from these actions will eventually drive Bitcoin to a hundred trillion dollar value,” he added.

Republicans are pushing the crypto vote for the election in November and Democrats have so far not attended the meeting of presidential candidate Kamala Harris.