Republican Senator Cynthia Lummis kept previewing the "Bitcoin Reserve Act" before this year's Bitcoin Conference Bitcoin 2024, and she finally said it in full at the meeting. A plan to use Bitcoin to manage the U.S. national debt, the bill proposes the creation of a strategic Bitcoin reserve and storing it in secure vaults across the country.
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Congressman Lummis emphasized the importance of Bitcoin during the meeting and compared its potential impact to the historical Louisiana Purchase (the United States' purchase of land from France in 1803). She announced that the reserve would start with 200,000 Bitcoins (a number also mentioned by Trump) and aim to accumulate 1 million Bitcoins within five years, accounting for 5% of the world's supply. The reserves will be kept for at least 20 years, with the primary purpose of reducing the national debt.
How Bitcoin Can Solve the National Debt
Lummis emphasized that the Bitcoin strategic reserve can significantly reduce the national debt by 2045. She quoted MicroStrategy founder Michael Saylor's comments that accumulating three million Bitcoins could completely eliminate the national debt and make the United States a debt-free nation.
Michael Saylor said at this conference that Bitcoin will be worth at least US$3 million in 2045.
$13M is the #Bitcoin Base Case. pic.twitter.com/0Wz60P2C5n
— Michael Saylor⚡️ (@saylor) July 27, 2024
National Bitcoin Financial Strategy
Lummis said the bill outlines that funding would come from asset forfeitures and excess reserves held by the Fed. Rather than holding these reserves in devalued U.S. dollars, they could be converted into Bitcoin. Historically, Bitcoin's average annual growth rate has reached 55%, which provides a good solution for economic stability.
