Senator Cynthia Lummis has proposed the BITCOIN Act to establish a Bitcoin reserve for the United States, mirroring strategies for commodities like oil and gold. The plan involves a network of secure Bitcoin vaults overseen by the US Department of Treasury. The goal is to acquire 1 million Bitcoin units, approximately 5% of the global supply, funded by reallocating existing Federal Reserve and Treasury resources.
Despite Lummis' endorsement, Bitcoin's price dropped by 2.97%, now trading at $64,462. The proposal emphasizes private Bitcoin holders' self-custody rights and aims to position the US as a financial innovation leader amidst rising inflation and national debt.
While Lummis announced the bill at the Nashville Bitcoin Conference, critics argue she's pandering to voters and that the $70 billion investment is minimal compared to the $34 trillion national debt. Paul Vigna, a well-known author, doubts the bill's effectiveness, arguing Bitcoin holds little strategic importance.
The BITCOIN Act's introduction is a landmark in US legislative history, initiating significant debate on integrating digital assets into national financial strategies. This proposal highlights varied perspectives on Bitcoin's role in government finance.
