Wyoming Senator Cynthia Lummis recently called on the U.S. Treasury to convert some of its gold certificates into BTC to establish a BTC strategic reserve, laying the foundation for the future development of digital assets.
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ToggleExchanging Gold for BTC
In an interview with Bloomberg, Cynthia Lummis mentioned that if the Treasury's gold certificates were converted to BTC, the "total assets" on the balance sheet would not change, and the U.S. government's balance sheet would remain "neutral" without directly impacting the government's debt burden. She had previously advocated for the Treasury to convert some of its assets to BTC as a strategic reserve, but this time she explicitly proposed using gold certificates to support this plan.
Pushing for a 5% BTC Strategic Reserve
In the "BTC Strategic Reserve Act" she is pushing for in the Senate, Cynthia Lummis suggested that the U.S. Treasury purchase 5% (about 1 million BTC) of the global BTC supply and hold these BTC for 20 years. At current market prices, achieving this goal would require an investment of about $90 billion. She emphasized:
"Establishing a BTC strategic reserve is crucial as Wyoming families struggle with soaring inflation pressures and the national debt reaches unprecedented heights."
Global Race for BTC
Investor and asset manager Anthony Pompliano stated that governments around the world are engaged in a BTC arms race. He believes that compared to the massive scale of government spending, the cost of investing in BTC is almost negligible.
"In the past 90 days, the U.S. national debt has increased by $850 billion. If we were to allocate a portion of these funds - say $50 billion to $100 billion - to purchase BTC, this would only represent a small fraction of BTC's current market capitalization. The potential return is worth the risk."
Potential Challenges
However, according to a previous Zombit report, Galaxy Digital founder and CEO Mike Novogratz believes that a BTC strategic reserve is unlikely to become a reality during the upcoming presidency of Donald Trump.
But he also added that if the Trump administration ultimately fulfills its promise to establish a BTC reserve, the BTC price could soar to $500,000 per coin.
