Key Takeaways
- Sen. Cynthia Lummis proposed the US government purchase 5% of the world's Bitcoin supply.
- The plan involves acquiring one million Bitcoin over five years, costing approximately $68.1 billion.
- Lummis aims to use the Bitcoin reserve to reduce national debt and avoid the devaluation of US dollars.
United States Senator Cynthia Lummis has introduced a bill proposing that the US government buy 5% of the world’s Bitcoin supply and hold it for at least 20 years. Speaking at the Bitcoin 2024 conference on July 27 in Nashville, Tennessee, Lummis declared:
This is the solution, this is the answer, this is our Louisiana purchase moment. Thank you, Bitcoin!
Lummis explained that the plan, if passed, will be implemented over five years. The government would acquire one million Bitcoin, roughly 5% of the total supply of 21 million Bitcoin. With Bitcoin priced at $68,105 at the time of publication, purchasing one million Bitcoin would cost approximately $68.1 billion.
Lummis stated:
This Bitcoin Reserve that we are going to create will start with the 210,000 Bitcoin that President Trump just mentioned and pull it into a reserve, stored in geographically diverse vaults, and that’s only the beginning. We have the money now, but we will no longer be holding it in US dollars and assets that are designed to debase at least 2% per year, we’ll be holding it in an asset that will grow in value.
Lummis is well-regarded in the Bitcoin industry for her pro-Bitcoin stance.
Her proposal received a positive reaction from the Bitcoin 2024 attendees. Her speech followed former US President and current Republican Party candidate Donald Trump’s keynote, where he announced his intent to make the US the “crypto capital of the world” if elected in November.
This proposal comes shortly after Lummis released a report opposing President Joe Biden’s administration’s proposed 30% excise tax on the energy consumed by Bitcoin miners. The report, titled “Powering Down Progress: Why A Bitcoin Mining Tax Hurts America,” highlights the benefits of Bitcoin mining to the US energy grid.
