With the goal of transforming U.S. tax policy, Senator Cynthia Lummis (R-WY) has boldly introduced A novel idea Create a bitcoin strategic reserve. According to the proposal, which will be introduced into law in the coming days, the US government would be required to purchase one million Bitcoins over a five-year period, which would represent approximately 5% of the total bitcoin availability.
A vision for debt reduction
The main goal of the bitcoin strategic reserve is to help reduce the country’s growing debt, which currently stands at $34.99 trillion and is a staggering figure. Lummis argues that by owning bitcoin, the United States could have an asset that could, by 2045, halve the national debt.
bitcoin-tim-scott-cynthia-lummis-crypto” target=”_blank” rel=”noopener nofollow”>In the snow He said during his keynote speech at the bitcoin 2024 conference, “Establishing a bitcoin strategic reserve will firmly safeguard the dollar’s place as the world’s reserve currency in the 21st century and ensure that we remain the world leader in financial innovation.”
Financing and security measures
Following the best standards of physical and cybersecurity, the Act outlines the construction of a dispersed network of secure bitcoin vaults managed by the Treasury Department. The reallocation of current money within the Federal Reserve System and the Treasury Department will help pay for bitcoin.
<blockquote class="twitter-tweet”>
This is the solution.
This is the answer.
This is our Louisiana Purchase moment!twitter.com/hashtag/Bitcoin2024?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>#Bitcoin2024
— Senator Cynthia Lummis (@SenLummis) twitter.com/SenLummis/status/1817340169751498858?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>July 27, 2024
Lummis stressed that the strategic reserve would not only help the US economy, but also ensure that the dollar remains competitive in a changing global financial landscape. She compared the project to a “Louisiana Purchase moment,” implying that it could change the US budget plan without raising taxes.
Protecting financial freedoms
The measure also ensures that the strategic reserve will not violate the self-custody rights of private bitcoin holders, thereby affirming the preservation of personal financial freedoms.
The statement comes after former President Donald Trump expressed his willingness to make the United States the “crypto capital of the world” if he is re-elected in November. Lummis’ comment also coincided with her recent criticism of the government’s planned 30% excise tax on bitcoin miners’ energy use.
<img loading="lazy" decoding="async" class="aligncenter wp-image-312505 size-medium" src="https://technicalterrence.com/wp-content/uploads/2024/07/Cynthia-Lummis-calls-on-the-US-to-buy-1-million.jpg" alt="bitcoin” width=”630″ height=”420″ srcset=”https://bitcoinist.com/wp-content/uploads/2024/07/a_e92a5e.jpg?w=4978 4978w, https://bitcoinist.com/wp-content/uploads/2024/07/a_e92a5e.jpg?w=630 630w, https://bitcoinist.com/wp-content/uploads/2024/07/a_e92a5e.jpg?w=768 768w, https://bitcoinist.com/wp-content/uploads/2024/07/a_e92a5e.jpg?w=980 980w, https://bitcoinist.com/wp-content/uploads/2024/07/a_e92a5e.jpg?w=1536 1536w, https://bitcoinist.com/wp-content/uploads/2024/07/a_e92a5e.jpg?w=2048 2048w, https://bitcoinist.com/wp-content/uploads/2024/07/a_e92a5e.jpg?w=750 750w, https://bitcoinist.com/wp-content/uploads/2024/07/a_e92a5e.jpg?w=1140 1140w, https://bitcoinist.com/wp-content/uploads/2024/07/a_e92a5e.jpg?w=3000 3000w” sizes=”(max-width: 630px) 100vw, 630px” data-recalc-dims=”1″/>
Image: Pexels
Lummis, who sits on key Senate committees, continues to champion concerns regarding land, energy, natural resources, and digital assets. Her strategic bitcoin reserve bill marks a bold step toward including cryptocurrencies in the national budget plan, ushering in a new era in American economic policy.
“We will no longer hold U.S. dollars or assets that depreciate at least 2% annually; we have the money today. Instead, Lummis said, we will hold it in an asset that will appreciate.
Attendees found great resonance in the Wyoming senator’s speech, which ended with a rallying cry comparing the project to a legendary financial maneuver: “This is the solution, this is the answer, this is our Louisiana Purchase moment. Thank you, bitcoin!”
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