U.S. Senator from Wyoming, Cynthia Lummis has proposed acquiring one million bitcoins using part of the Federal Reserve’s gold reserves.
Key Aspects of Lummis's Proposal
Known for her support of Donald Trump, Lummis argues that this strategy will significantly boost federal Bitcoin holdings. The proposal comes amid a surge in Bitcoin’s price, which reached $93,500 following Trump's election victory.
Cost of the Operation
According to Bloomberg, Lummis plans to introduce legislation allowing the purchase of Bitcoin funded by the sale of a portion of the Federal Reserve’s gold assets. The proposed BITCOIN Act (Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide) aims for the government to acquire up to one million Bitcoin. Lummis estimates the operation's cost at about $90 billion at current market prices, though she acknowledges this number could rise if markets react to potential government involvement.
Strategic Role of Bitcoin
The plan positions Bitcoin as a strategic asset, potentially reshaping government interaction with digital currencies and financial reserves. Lummis firmly believes in converting gold certificates into Bitcoin, stating, 'It is possible to convert our financial assets in the form of gold certificates into Bitcoin.'
Thus, Senator Lummis's proposal is ambitious, suggesting the use of digital currencies as strategic assets without increasing national debt.
