Can A Strategic Bitcoin Reserve Backed USD Become A Reality?

Donald Trump, Robert F Kennedy Jr and Senator Cynthia Lummis – all spoke of a government reserve of Bitcoin turning into a reality. 

Senator Cynthia Lummis proposed a $67 billion strategic Bitcoin reserve to back the US Dollar while speaking at the Bitcoin 2024 Conference in Nashville, Tennessee on 27 July 2024. 

According to her, this “revolutionary proposal” is aimed to bolster the USD.

“Establishing a strategic Bitcoin reserve would firmly secure the dollar’s position as the world’s reserve currency into the 21st century and ensure we remain the world leader in financial innovation,” said Senator Lummis.

The market is deeming this announcement to indicate an important economic movement. It is rumoured that if Donald Trump were to be elected, he may actually establish a US strategic Bitcoin reserve, which could see US buying more Bitcoin in the coming days.

Meanwhile, independent Presidential candidate Robert F Kennedy Jr said, “I would like to have the federal government begin to buy Bitcoin and to, over the term of my term of office, ultimately have an equivalent amount of Bitcoin that we have gold because Bitcoin is an honest currency.”

“The cascading impact from these actions will eventually move Bitcoin to a valuation of hundreds of trillions of dollars,” he added.

We will convert excess reserves at our 12 Federal Reserve banks into #bitcoin over five years. We have the money now! pic.twitter.com/fGtYQ15jQJ

— Senator Cynthia Lummis (@SenLummis) July 27, 2024

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Promise Of Securing Economic Future By Diversifying Into Bitcoin

Talking specifically about rising inflation, Senator Lummis said, “Families across Wyoming and the US are struggling to keep up with soaring inflation rates and record-breaking costs while our national debt reaches unprecedented levels; now more than ever, we need to create a brighter future for generations of Americans by diversifying into Bitcoin and securing our economic future.”

The US currently maintains strategic reserves in gold and petroleum. Senator Lummis’s plan, which may be introduced as legislation in the coming days, calls for the US government to acquire approximately 1 million Bitcoin over a five-year period. 

Bitcoin is the only option for the USA to pay off its $34 trillion national debt.

Once Bitcoin reaches $13,000,000 it will only require the USA to HODL 2.6 million Bitcoin to pay off 100% of its $34 trillion debt.

We must pursue a Bitcoin Strategic Reserve to save America 🇺🇸

— Dennis Porter (@Dennis_Porter_) July 27, 2024

This target represents about 5% of the world’s total Bitcoin supply and mirrors the size of the country’s gold reserves. At current market prices, this acquisition would amount to a staggering investment of around $67 billion.

Till 2023,  the US Treasury was sitting on a stash of 207,189 bitcoin, worth $5 billion, according to a Forbes report.

“Establishing a strategic Bitcoin reserve to bolster the US dollar with a digital hard asset will secure our nation’s standing as the global financial leader for decades to come,” said Senator Lummis.

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Trump Doubles Down On His Crypto-Related Promises

Speaking at the same conference, Trump pledged to maintain the current level of Bitcoin holdings that the US has amassed from seizing assets from financial criminals.

Trump also said that he wants to make the US, “the crypto capital of the planet,” and Bitcoin “the superpower of the world.”

Read more: US Will be Crypto Capital of World: Donald Trump at Bitcoin 2024 

Among other promises made to crypto community, Trump also said that he would fire the chairperson of the US Securities and Exchange Commission (SEC), Gary Gansler, on his first day if re-elected. 

Meanwhile, competitor Harris is also courting the crypto vote. Her advisers have reached out to major crypto companies including Coinbase, Circle, Ripple Labs and more in an effort to “reset” the relationship between the Democratic party and the crypto industry.

Read more: Is Trump v/s Harris Turning Into A Contest To Appease Crypto Community?

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.

Disclaimer

Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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