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Senator Lummis argues a Strategic Bitcoin Reserve could cut US debt in half and strengthen the dollar’s global status.
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Despite declining growth rates, Bitcoin’s appreciation could significantly offset national debt over two decades.
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15 states have endorsed the idea, and 13 states have introduced bills to establish a Strategic Bitcoin Reserve.
Senator Cynthia Lummis advocates for a Strategic Bitcoin Reserve, citing its potential to drastically reduce national debt and enhance the dollar’s status globally.
Senator Lummis’ Bitcoin Reserve Push
In a recent interview, Lummis explained that a Strategic Bitcoin Reserve could cut the current debt in half. In 2025, the US national debt is projected to surpass $36 trillion.
Lummis suggested the US could leverage Bitcoin’s appreciation to support the US dollar as the world’s reserve currency. She considers it crucial for maintaining economic stability and favorable trade advantages.
“It ensures that the US dollar is the most accepted currency worldwide, and then with Bitcoin underpinning it and being also a global means of exchange and store of value, gives us that double support for the US dollar,” Lummis said.
In addition, she referenced Bitcoin’s historical annual growth rate of approximately 55%. However, she acknowledged that this rate will gradually decline. According to Lummis, it could decrease to 45%, 35%, 25%, and so on over the next two decades.
Despite a declining growth curve, the Senator believes a $1 million Bitcoin reserve today could be worth roughly half of the US national debt in 20 years. She also noted that Robert F. Kennedy Jr. used a similar model. Therefore, Lummis projected that a larger reserve could potentially eliminate the entire debt.
“I look at a Strategic Bitcoin Reserve and its ability to grow and help me right the wrongs that my generation did by driving us into this terrible debt. It’s the only vehicle I see that can have that consequential effect,” she said.
On July 31, 2024, Senator Lummis introduced the BITCOIN Act, proposing the establishment of a 1 million Bitcoin reserve. Last month, she also became the first chair of the Senate Banking Subcommittee on Digital Assets.
Meanwhile, support for a Strategic Bitcoin Reserve is growing. At the state level, 15 states have publicly endorsed it, Satoshi Action Fund’s founder, Dennis Porter, shared on X (formerly Twitter).
- US States Exploring Strategic Bitcoin Reserves. Source: Dennis Porter/X
At least 11 states have introduced bills to establish a Strategic Bitcoin Reserve. Furthermore, Arizona and Utah have approved their proposals through committees.
According to Porter, over 3,300 letters have been sent to Members of Congress advocating for Bitcoin to be recognized as part of a strategic stockpile. This comes after President Donald Trump signed an executive order to establish a “national digital asset stockpile” without specifying Bitcoin.
Conclusion
Senator Lummis’ vision of a Strategic Bitcoin Reserve highlights the potential for Bitcoin to play a significant role in the US economy’s future. By enhancing the financial health of the nation and offering a new tool for debt management, her proposal could shape economic policy. The growing support among states indicates a significant shift in how digital assets are perceived as part of the economic fabric. As more regions push for the implementation of such reserves, a broader conversation about the appropriate use of cryptocurrencies in a national context will ensue.
