Bitcoin is gaining traction in the Republican Party. Former President Donald Trump has been a strong advocate of the currency. Lawmakers are positioning it as the cornerstone to US economic growth.
US Senator Cynthia Lummis has led this charge, lobbying in favor of the Bitcoin Act that aims to create a Bitcoin strategy. reserve For the United States
The Boldest Solution to Fiscal Crisis
Recent studies have shown that the number of people who are able to speak English is increasing. interview with Bankless, Lummis articulated her vision for the Bitcoin Act, highlighting its potential to address the nation’s staggering $35 trillion debt, which she argues has no viable solutions under current fiscal policies. Lummis is convinced that the creation of a Bitcoin Reserve will be the best way to manage this debt crisis.
In order to create the Bitcoin Reserve, the US Government proposes to repurpose gold certificates that are valued today at the historical rate from 1917. The current market value is approximately $2400.
Senator plans to spend the differential on purchasing BTC over a five-year period, with a target of acquiring over one million BTC—roughly 5% of the total supply—storing them securely in cold storage for twenty years. Lummis says that if this strategy is implemented, it could reduce the debt of the nation by half.
Lummis said that the approach allows for the US government to continue investing in Bitcoin while avoiding any impact on the US balance sheet Avoid incurring additional debt. She views Bitcoin as a solution she has sought throughout her career, arguing that its characteristics as a non-government-issued asset make it a more reliable backing for fiat currencies compared to traditional stocks or other fiat currencies.
Global ‘Arms Race’ For Bitcoin?
Addressing concerns about the devaluation of the US dollar, particularly during the COVID-19 pandemic when unprecedented amounts of US dollars were printed, Lummis highlighted BTC’s scarcity as a key differentiator. She called it a real diversifier, which does not face the same inflationary problems as fiat currency.
Lummis, in a statement that provoked thought, suggested that we may be seeing an “arms race”Not for weapons dominance but Bitcoin’s secure storage of value. She said that nations like China, Russia, and the US are competing more to become leaders in cryptocurrency.
After her comments at the 2024 Bitcoin Conference there was a noticeable increase in the number of constituent letters asking for support for the Bitcoin Act. Now, the legislation will be referred for more consideration to Senate Committee on Banking, Housing, and Urban Affairs.
This push for a Bitcoin reserve aligns with Trump’s vision to position the United States as the “crypto capital of the planet.”Former President has stressed It is important to maintain a large Bitcoin and crypto currency reserve. Failure to do so could lead nations such as China gain the upper hand on the global cryptocurrency market. financial landscape.
Trump has reiterated Bitcoin’s potential as a modern currency, citing endorsements from individuals within his circle and urging the government to recognize its benefits.
The largest crypto currency on the market is currently trading at around $58,000.
Chart from TradingView.com, image from DALL.E
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Source: www.newsbtc.com