U.S. Senator Cynthia Lummis introduced the “Strategic Bitcoin Reserve” bill, proposing that the U.S. government purchase 5% of the global Bitcoin supply and hold it for at least 20 years.
“This can be used for one purpose: to reduce debt,” Lummis declared during a keynote speech at the Bitcoin 2024 conference in Nashville, Tennessee on July 27.
Lummis explained that if passed, the plan would be implemented over a five-year period with the goal of the U.S. government acquiring 1 million bitcoins. BTCUSDThis represents approximately 5% of Bitcoin’s total supply of 21 million.
At the time of writing, the price of Bitcoin is $68,105, according to data from CoinMarketCap, meaning it would take roughly $68.1 billion to buy 1 million Bitcoin.
“The Bitcoin reserve that we’re going to create will start with the 210,000 BTC that President Trump mentioned earlier, and we’ll collect that as a reserve and store it in geographically distributed vaults, but that’s just the beginning,” Lammis said.
“We have money now, but going forward, rather than holding it in US dollars or assets that are designed to depreciate at least 2% a year, we will hold it in assets that will appreciate in value,” she added.
Lummis is a well-known figure in the crypto industry.
Lummis, a well-regarded pro-crypto advocate in the crypto industry, exclaimed, “This is the solution, this is the answer, this is my Louisiana Purchase moment, thank you Bitcoin!”, drawing a positive response from Bitcoin 2024 attendees.
