Washington, D.C.— Today, during Bitcoin 2024, U.S. Senator Cynthia Lummis (R-WY) announced a revolutionary proposal to supercharge the U.S. dollar by establishing a strategic Bitcoin reserve to fortify the dollar against rising inflation and cement U.S. leadership in the rapidly evolving global financial system.
“Establishing a strategic Bitcoin reserve would firmly secure the dollar’s position as the world’s reserve currency into the 21st century and ensure we remain the world leader in financial innovation,” said Lummis. “Families across Wyoming and the U.S. are struggling to keep up with soaring inflation rates and record-breaking costs while our national debt reaches unprecedented levels; now more than ever, we need to create a brighter future for generations of Americans by diversifying into Bitcoin and securing our economic future.”
The United States currently maintains strategic reserves in certain hard assets critical to American national security and independence such as gold and petroleum. Establishing a strategic Bitcoin reserve to bolster the U.S. dollar with a digital hard asset will secure our nation’s standing as the global financial leader for decades to come. This strategic Bitcoin reserve would be required to hold onto the Bitcoin for 20 years, the only thing it could be used to pay for during that time period is paying down our country’s national debt.
Specifically, the legislation would:
- Establish a decentralized network of secure Bitcoin vaults operated by the United States Department of Treasury with statutory requirements ensuring the highest level of physical and cybersecurity for the nation’s Bitcoin holdings.
- Implement a 1-million-unit Bitcoin purchase program over a set period of time to acquire a total stake of approximately 5% of total Bitcoin supply, mirroring the size and scope of gold reserves held by the United States.
- Be paid for by diversifying existing funds within the Federal Reserve System and Treasury Department.
- Affirm self-custody rights of private Bitcoin holders and emphasize that the strategic Bitcoin reserve shall not infringe upon individual financial freedoms.
The bill is expected to be introduced in the coming days with additional cosponsors to be announced.