WASHINGTON, DC — Today, during Bitcoin 2024, U.S. Senator Cynthia Lummis (R-Wyo.) announced a groundbreaking proposal to jumpstart the U.S. dollar by establishing a strategic Bitcoin reserve to strengthen the U.S. dollar against rising inflation and solidify U.S. leadership in a rapidly evolving global monetary system.
“Establishing a strategic Bitcoin reserve would solidify the dollar’s position as the world’s reserve currency into the 21st century and ensure we remain a global leader in financial innovation,” Lummis said. “With families in Wyoming and across the country struggling to keep up with soaring inflation and record costs, and our national debt reaching unprecedented levels, now is the time to create a brighter future for generations of Americans by diversifying into Bitcoin and securing our economic future.”
The United States currently maintains strategic reserves of certain tangible assets, such as gold and oil, that are critical to the national security and independence of the United States. Establishing a strategic Bitcoin reserve to strengthen the US dollar with digital tangible assets would ensure the United States’ position as a global financial leader for decades to come. This strategic Bitcoin reserve must hold Bitcoin for 20 years, but during that time it can only be used to pay off the country’s sovereign debt.
Specifically, the law states:
Create a decentralized network of secure Bitcoin vaults operated by the U.S. Treasury to meet statutory requirements to ensure the highest level of physical and cybersecurity for the nation’s Bitcoin holdings; Conduct a one million unit Bitcoin purchase program over a period of time to acquire a combined stake of approximately 5% of the total Bitcoin supply, reflecting the size and scope of the gold reserves held by the United States; Cover the cost by diversifying existing funds within the Federal Reserve and the Treasury; Affirm individual Bitcoin holders’ right to self-control and emphasize that a strategic Bitcoin reserve will not infringe on individual financial freedom.
The bill is expected to be introduced in the next few days, with additional co-sponsors expected to be announced.
