Senator Cynthia Lummis has suggested a bold move to address the U.S. debt crisis and stabilize the dollar. She proposes that the United States purchase 5% of the global Bitcoin supply, which amounts to a $68 billion investment. The plan is to hold this reserve for a duration of 20 years, potentially offering a solution to financial instability and national debt issues.
This idea underscores the growing legitimacy and importance of Bitcoin in global financial markets. By holding such a significant amount of Bitcoin, the U.S. could potentially leverage the appreciating value of this cryptocurrency to counteract debt and currency fluctuations. This proposal highlights the increasing consideration of digital assets in national economic strategies.
Lummis's proposal is also a reflection of the broader trend where nations are beginning to see cryptocurrency, particularly Bitcoin, as a store of value akin to gold. It could serve as a critical backbone for national reserves and economic stabilization tactics. This could mark a significant step towards mainstream adoption of Bitcoin in national fiscal policies.
