Senator Cynthia Lummis Proposes Bitcoin Strategic Reserve Bill to Halve US National Debt by 2045

Senator Cynthia Lummis, known for her strong support of Bitcoin, has presented a novel Bitcoin Strategic Reserve bill intended to overhaul America's financial landscape.

Senator Cynthia Lummis, a Republican from Wyoming, is known for her strong support of Bitcoin. She has now proposed a novel bill, the Bitcoin Strategic Reserve, that aims to overhaul America's financial landscape.

In her speech at the Bitcoin 2023 Conference in Miami on May 7, Lummis proposed a plan to gather 1 million Bitcoin within five years, which she suggests could halve the US national debt by 2045. This innovative approach aims to achieve the goal without the need to raise taxes.

Her bill, co-sponsored by Senator John Kennedy (R-LA), would see the U.S. government allocate a portion of its annual budget to purchasing Bitcoin, with the aim of eventually accumulating a total of 1 million BTC. The bill proposes that the government begin purchasing Bitcoin in 2024, continuing to do so until the target of 1 million BTC is reached.

The acquired Bitcoin would then be held in a "strategic reserve" for a minimum of 20 years, during which time it would not be sold or used for any other purpose. After the 20-year period, the government would be permitted to begin selling the Bitcoin, with the proceeds being directed towards reducing the national debt.

Lummis highlighted the pressing need to address the country's worsening fiscal situation, emphasizing that the national debt is now more than $31 trillion and continues to rise. She pointed out that traditional methods of debt reduction, such as raising taxes or cutting spending, are politically contentious and have proven largely ineffective.

The senator argued that her bill presents a unique and innovative solution to this critical issue. By acquiring and holding Bitcoin, the government could capitalize on the potential for substantial appreciation in its value over the next two decades.

She further noted that the government already holds other strategic reserves, such as those for oil, natural gas, and food commodities, to ensure the country's resilience in times of crisis. Lummis maintained that a Bitcoin reserve would serve a similar purpose, safeguarding America's financial strength and stability.

The bill also includes provisions to ensure transparency and accountability in the government's handling of the Bitcoin reserve. It would require regular reporting to Congress on the status of the reserve, including the amount of Bitcoin acquired, the average purchase price, and the total market value of the reserve.

Lummis expressed confidence that her bill will garner bipartisan support, highlighting that several Democratic senators, includingKirsten Gillibrand (D-NY) and Elizabeth Warren (D-MA), have previously shown interest in exploring the concept of a government-owned Bitcoin reserve.

She concluded her speech by emphasizing the urgency of the situation, stating that the country cannot afford to wait any longer to take bold and innovative measures to address its pressing fiscal challenges. Lummis asserted that her bill offers a clear path towards reducing the national debt, ensuring long-term economic prosperity, and ultimately improving the lives of all Americans.

The above is the detailed content of Senator Cynthia Lummis Proposes Bitcoin Strategic Reserve Bill to Halve US National Debt by 2045. For more information, please follow other related articles on the PHP Chinese website!