US senator proposes $68B bitcoin reserve plan

U.S. Senator Cynthia Lummis announced on Saturday her intention to introduce legislation to establish a “1-million-unit Bitcoin purchase program” to bolster the U.S. dollar and combat rising inflation.

The proposed legislation aims to create a strategic bitcoin reserve to reinforce the dollar’s position and maintain U.S. leadership in the global financial system.

Proposal details

According to Sen. Lummis, the program, worth over $68 billion at the current bitcoin price, would secure approximately 5% of the total bitcoin supply. This move mirrors the size of the U.S. gold reserves and is designed to strengthen the dollar’s status as the world’s reserve currency into the 21st century.

Addressing economic challenges

Sen. Lummis emphasized the importance of this initiative for American families struggling with inflation and record-breaking costs. She highlighted the need to diversify into bitcoin to ensure a brighter economic future for generations of Americans.

Legislative provisions

The proposed legislation includes:

• Establishing a decentralized network of secure bitcoin vaults operated by the Treasury Department with strict physical and cybersecurity measures.
• Affirming self-custody rights of private bitcoin holders, ensuring that the strategic bitcoin reserve does not infringe on individual financial freedoms.
• Financing the program by reallocating existing funds within the Federal Reserve System and the Treasury Department.

Strategic importance

“This strategic Bitcoin reserve would hold the bitcoin for 20 years, with its primary use being to pay down the national debt,” the statement said. The reserve is intended to bolster the U.S. dollar with a digital hard asset, securing the nation’s position as a global financial leader.

Lummis, who serves on several Senate committees, including Banking, Housing, & Urban Development, and Commerce, Science, & Transportation, has focused on finance and technology issues like bitcoin and digital assets.

“This move will secure our economic future and ensure U.S. leadership in financial innovation for decades to come,” she added.