Cynthia Lummis proposes using Bitcoin to reduce US debt and strengthen the dollar as a global currency. In a recent interview, she explained how such a treasury would help the United States.
Cynthia Lummis: Bitcoin to reduce the American debt by 50% in 20 years
In a recent interview, Senator Cynthia Lummis claims that building a Bitcoin reserve could cut the US debt in half within 20 years.
As Bitcoin hits all-time highs, breaking new records daily, optimism appears to be overwhelming the US market.
Indeed, the market was patiently waiting for a positive sign to take off towards new horizons. The election of Donald Trump in the United States has had the effect of reassuring investors about the future of cryptocurrencies in the country.
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This effect was reinforced with the announcement that Gary Gensler will resign as chairman of the Securities and Exchange Commission (SEC) on January 20, 2025.
This general trend of institutionalization of Bitcoin generates a virtuous circle in the cryptocurrency market. In particular, the creation of a strategic reserve is a trend, as illustrated by the press releases of several American companies which follow the example of MicroStrategy.
This phenomenon is not exclusive to the private domain since it is also what Senator Cynthia Lummis who proposes an initial acquisition of 200,000 BTC, then to accumulate 1 million Bitcoins over the next 20 years.
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A strategic reserve of Bitcoin: Bitcoin Act 2024
In an interview with Fox Business, she described Bitcoin as a long-term store of value, an asset with strategic reserve potential similar to gold or oil.
The latter is convinced that the strength of a strategic reserve lies in its diversification in order to effectively protect its country from inflation and strengthen the global domination of the dollar.
We would have an asset that would increase in value, while our own dollar would lose value, allowing us to consolidate the US dollar as the global reserve currency.
It is for this reason that in its proposed Bitcoin 2024 law, it wishes to formalize a double action of asset diversification with proactive management of the United States debt.
Through this program, she also wishes establish a decentralized network of secure Bitcoin storage facilities, which would be distributed throughout the United States.
On the Salvadoran model, it proposes to establish a system of proof of reserve which would consist of publishing quarterly reports on the management of this reserve.
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Another notable fact, all BTC held by other American agencies will be transferred to this famous strategic reserve and each state will be able to voluntarily deposit or withdraw funds into separate accounts.
The senator also recalled the importance of self-custody and security linked to decentralization and financial freedom linked to the properties of Bitcoin.
It is very important that we protect Bitcoin and the people who hold their bitcoins in individual wallets. We do not want this asset to become the property of governments alone and we certainly do not want it to be controlled by governments. Because its great virtue is to be a currency of freedom.
Very attached to the right to self-detention, she also reaffirms in her bill the impossibility for the American government to seize or confiscate Bitcoins legally held by citizens.
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