US Senator Cynthia Lummis, known for her support of Donald Trump, introduced a proposal for a strategic Bitcoin reserve that would not impact the federal budget deficit.
Plans for Bitcoin Reserve
Lummis' proposal aims to finance the purchase of 1 million Bitcoins by selling some of the Fed's gold holdings, constituting about 5% of the total token supply.
Financial Aspect of the Proposal
Lummis estimates that the creation of such a stockpile would cost around $90 billion at current Bitcoin prices. Lummis noted that the US already has financial assets in the form of gold certificates to convert to Bitcoin, having a fairly neutral impact on the balance sheet.
Skepticism and Criticism
Despite growing interest by the US government in cryptocurrencies, skepticism remains. Polymarket forecasts indicate a 31% chance of creating a Bitcoin reserve. Jennifer J. Schulp expressed skepticism, mentioning that the bill asks senators and congress members, who are not well-versed in cryptos, to have greater faith in their long-term viability.
Lummis' proposal could significantly expand Trump's current strategic Bitcoin reserve plans and potentially aid in reducing national debt, though facing criticism and requiring further analysis and consensus in Congress.
