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- Sen. Cynthia Lummis introduces a bill to create a US Bitcoin reserve, aiming to accumulate 1 million BTC
- The bill includes strict cybersecurity standards to protect the Bitcoin reserves under the US Treasury
- The proposal comes amid political promises and recent government Bitcoin transactions, stirring debate
On July 31, Senator Cynthia Lummis introduced the Bitcoin Strategic Reserve bill, which aims to create a Bitcoin reserve managed by the U.S. government.
The bill suggests setting up a “decentralized network of secure vaults for Bitcoin” under the Treasury’s control. The goal is to accumulate 1 million Bitcoins, which is about 5% of the total supply.
A Bold Move: U.S. Senate Proposes Bitcoin Reserve Fund
On July 31, Senator Cynthia Lummis introduced the Bitcoin Strategic Reserve bill, which would see the U.S. government start a reserve fund for the decentralized asset.
The bill lays out the creation of a “decentralized network of secure Bitcoin vaults” under Treasury supervision. It also requires rigorous cybersecurity standards and physical security measures to protect the Bitcoin funds from theft.
The bill aims to amass 1 million Bitcoins over time, which would be around 5% of the total supply. To do so, it plans to use existing Treasury funds to purchase Bitcoin in amounts similar to how the Treasury allocates gold.
Lummis also commented on the historic proposal when she introduced the bill. She said it was time to take bold steps to create a brighter future for generations to come by establishing a strategic Bitcoin reserve, given that Wyoming families are struggling with rising inflation and our national debt is at an all-time high.
The bill also reaffirms the right to self-custody in the U.S., which has faced some challenges from lawmakers in the past.
Are these just empty promises?
Lummis’s big plan to get 5% of the total Bitcoin supply has got the thumbs-up from politicians like Robert F. Kennedy Jr. and Republican presidential candidate Donald Trump.
However, not long after Trump said he wouldn’t sell the U.S. Bitcoin holdings, the government transferred 29,800 Bitcoins, worth around $2 billion, to an unidentified wallet address. This move prompted Galaxy Digital CEO Mike Novogratz to say it was “tone deaf.”
Some people think that the current inflation issues affecting the U.S. dollar, due to a $35 trillion national debt, will lead to a shift towards hard assets like Bitcoin.
Conclusions
To sum up, Senator Lummis’s idea of setting up a Bitcoin reserve is a big move towards modernising state reserves, but it has its fair share of hurdles.
The plan to get a big chunk of Bitcoin could affect the country’s financial strategy, especially with inflation on the rise and the government transferring Bitcoin recently.
How this proposal plays out will be key to understanding its broader implications for financial and regulatory trends.
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