Senator Lummis Claims Bitcoin Could Cut National Debt In Half By 2045
04 Setembro 2024 - 10:00PM
NEWSBTC
As Bitcoin gains traction within the Republican Party, notably
championed by former President Donald Trump, lawmakers are
increasingly positioning the cryptocurrency as a cornerstone for US
economic growth. US Senator Cynthia Lummis is at the
forefront of this movement, advocating for the Bitcoin Act, which
aims to establish a strategic Bitcoin reserve for the United
States. A Bold Solution For Fiscal Crisis In a recent 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 believes that creating a Bitcoin
reserve is the only rational approach to managing this debt crisis.
Related Reading: Bitcoin Analyst Points To $55,000 As Potential
Bottom – US Liquidity The Key The proposed mechanism for the
Bitcoin reserve involves the US government repurposing gold
certificates, which are currently valued at their historical rates
from 1917, to their present market value of approximately
$2,400. The senator plans to use the differential to purchase
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 asserts that this strategy
could effectively cut in half the national debt by 2045. Lummis
emphasized that this approach further allows the government to
invest in Bitcoin without impacting the US balance sheet or
accruing 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 described it as a true diversifier that does
not suffer from the same inflationary pressures as fiat currencies.
In a thought-provoking statement, Lummis suggested that the future
may see an “arms race” not for weapon dominance, but for Bitcoin as
a secure store of value. She noted that countries like the US,
China, and Russia are increasingly competing to establish
themselves as leaders in crypto. Following her remarks at the 2024
Bitcoin Conference, there has been a notable increase in
constituent letters urging support for the Bitcoin Act. The
legislation has now been referred to the Senate Committee on
Banking, Housing, and Urban Affairs for further consideration.
Related Reading: Is Chainlink (LINK) Sliding To $9? On-Chain
Metrics Expose Weak Network Activity This push for a Bitcoin
reserve aligns with Trump’s vision to position the United States as
the “crypto capital of the planet.” The former president has
stressed the importance of maintaining robust Bitcoin and
cryptocurrency reserves, warning that neglecting this opportunity
could allow nations like China to gain an upper hand in the global
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. At
the time of writing, the largest cryptocurrency on the market
trades at $58,000. Featured image from DALL-E, chart from
TradingView.com
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