- U.S. senator proposes to acquire 1 million Bitcoin for a national reserve.
- Bitcoin integration aims to strengthen economic stability and security.
- Proof of Reserve system ensures transparency and public accountability.
Senator Cynthia Lummis has introduced the Bitcoin Act of 2024, a proposal to establish a Strategic Bitcoin Reserve for the United States.
The plan seeks to acquire 1 million BTC over five years and reduce the national debt by 50% within two decades. By incorporating Bitcoin into its asset strategy, the U.S. aims to position itself as a leader in digital finance.
Bitcoin as a Hedge Against Economic Uncertainty
Senator Lummis doubled down on Bitcoin’s potential to slash the national debt, describing it as a hedge against economic risks. The plan also introduces a cryptographically attested Proof of Reserve system to enhance transparency. An initial $6 billion in annual earnings from the Federal Reserve will fund the reserve, alongside measures affirming citizens’ property rights for Bitcoin self-custody.
Lummis’s vision for a Strategic Bitcoin Reserve gained traction as the U.S. debt crossed $35 trillion during the Biden administration. Her proposal to replace gold with Bitcoin as a reserve asset sparked extensive debate but highlights a shift toward digital assets in national finance.
Read also: Senator Lummis Advocates for Bitcoin Reserve to Address $35 Trillion US Debt
Bitcoin Act Progresses Through Legislative Hurdles
The Bitcoin Act has passed two readings and is under review by the Committee on Banking, Housing, and Urban Affairs. If enacted, the legislation would position the U.S. as a leader in Bitcoin adoption, signaling a broader commitment to cryptocurrency integration under Donald Trump’s re-election.
Supporters view this initiative as a bold step forward, while critics question its feasibility and potential risks. Regardless, the Bitcoin Act underscores Bitcoin’s growing influence on global financial policy.
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