U.S. Senator Cynthia Lummis has introduced a groundbreaking proposal to create a Bitcoin national strategic reserve by selling a portion of the Federal Reserve’s gold holdings. Rather than relying on the federal budget, Lummis believes reallocating existing gold assets could be a game-changer for America’s financial strategy.
A Bitcoin-Backed Vision for National Debt Reduction
In an interview with Bloomberg, Lummis outlined her vision for the U.S. to convert gold certificates into Bitcoin, enabling the country to tap into the long-term appreciation potential of the world’s largest cryptocurrency.
“We already have the financial assets in the form of gold certificates to convert to Bitcoin,” Lummis stated.
Under her proposed plan:
- The U.S. government would hold Bitcoin for no less than two decades, leveraging its projected value growth to help reduce the $36 trillion national debt.
- The administration would aim to maintain a 200,000 Bitcoin reserve, largely sourced from seized assets in federal court cases.
This bold move is part of President-elect Donald Trump’s masterplan to strengthen America’s position in the cryptocurrency space.
Mixed Sentiment from Crypto Community
While the proposal has sparked interest, skepticism remains within the crypto community. On Polymarket, the world’s largest prediction market, only 30% of participants expressed confidence in Trump’s Bitcoin strategy.
However, the recent influx of pro-crypto legislators into Congress signals a promising outlook for the plan’s potential approval.
Trump’s Bitcoin Agenda Gains Momentum
President-elect Donald Trump has repeatedly pledged to establish the United States as the global hub for cryptocurrency innovation.
Key commitments include:
- Creating a Bitcoin Strategic Reserve: Trump aims to position Bitcoin as a core national asset.
- Dismissing SEC Chairman Gary Gensler: Trump plans to replace Gensler with a leader more supportive of digital assets.
- Pardoning Ross Ulbricht: The founder of Silk Road, currently serving a 40-year sentence, could see clemency as part of Trump’s efforts to gain support from the crypto community.
Trump recently declared at a Nashville conference:
“The United States will be the crypto capital of the world as I take office in mid-January.”
Market Confidence on the Rise
Bitcoin’s price surged by 12% over the past week, reaching $89,632 on November 18, and hitting a record high of $93,477 on November 13. The cryptocurrency’s market capitalization now stands at a robust $1.7 trillion, buoyed by Trump’s election victory and optimism for pro-crypto regulations.
A New Era for Cryptocurrency Adoption
With Lummis spearheading innovative financial strategies and Trump’s administration prioritizing crypto-friendly policies, the stage is set for a potential transformation of the U.S. financial landscape.
Stay tuned to CentBit.Online for expert insights into blockchain, cryptocurrency, and the evolving digital economy.
