US Senator Lummis calls on the US Treasury Department to convert gold to Bitcoin, create a strategic reserve fund, instead of directly purchasing $90 billion.
On November 14, Senator Cynthia Lummis from Wyoming made a notable proposal, calling on the US Treasury Department to convert a portion of the nation's gold reserves - the largest in the world at over 8,000 tons - into Bitcoin. The goal is to build a strategic reserve fund to mitigate the impact of inflation and strengthen the country's financial capabilities.
According to Lummis, instead of directly spending $90 billion to purchase Bitcoin, converting the existing gold certificates into this cryptocurrency would help the US government avoid significant fluctuations on the balance sheet. In an interview with Bloomberg, she emphasized that this solution is not only a financial strategy but also a stepping stone to seize the long-term opportunities that Bitcoin offers, especially in the context of the US economy facing significant pressure from inflation and public debt.
This proposal is part of the Strategic Bitcoin Reserve Act initiated by Lummis in the Senate. According to the bill, the US Treasury Department will own 5% of the total Bitcoin supply - equivalent to around 1 million BTC - and commit to holding this asset for 20 years. At the current Bitcoin price, this plan requires an investment of around $90 billion, a significant amount but considered reasonable compared to the potential value that Bitcoin can bring.
Lummis affirmed that the Bitcoin reserve fund is not only a measure to combat inflation but also an opportunity to help the US strengthen its leading position in the financial technology field. She emphasized: "Bitcoin is a superior store of value, and the early establishment of a reserve fund will help the United States mitigate the risk of the devaluation of the US dollar in the future."
Lummis' proposal has quickly received the support of Bitcoin-supporting investors. Anthony Pompliano, a renowned investor, noted that the $90 billion expenditure to purchase Bitcoin is modest compared to the growth rate of the US national debt - which has increased by $850 billion in the past 90 days alone. He believes that investing in Bitcoin is a strategic opportunity to mitigate long-term financial risks, especially as this asset is increasingly recognized globally.
However, not all opinions are positive. Mike Novogratz, CEO of Galaxy Digital, believes the likelihood of this proposal being implemented during the term of President-elect Donald Trump is low. Nevertheless, he stated that if the US establishes a Bitcoin reserve fund, the value of this asset could rise significantly, even reaching $500,000 per BTC.
Lummis' proposal comes as other countries have taken similar steps to integrate Bitcoin into their national financial systems. El Salvador is the first country to adopt Bitcoin as legal tender and has added this asset to the government's balance sheet. Bhutan is also implementing initiatives related to Bitcoin mining and cryptocurrency accumulation.
