Senator Cynthia Lummis has introduced a proposal to mitigate the escalating $35 trillion US national debt through Bitcoin reserves. The plan involves the US government purchasing 1 million Bitcoins, which constitutes 5% of the total Bitcoin supply. The idea is to leverage Bitcoin's value to alleviate the mounting debt burden.
The proposal points to Bitcoin's emerging role as a monetary reserve asset. By holding Bitcoin, the US might hedge against financial risks and diversify its reserves. This approach aims to bring stability amid economic uncertainties.
Lummis' proposal underscores the increasing acceptance of cryptocurrencies within traditional finance sectors. Additionally, it may pave the way for more governmental adoption and exploration of blockchain-based solutions to fiscal challenges.
