During the Bitcoin 2024 conference in Nashville on July 27, US Senator Cynthia Lummis proposed the U.S. government consider Bitcoin as a strategic reserve asset to stabilize the dollar and counter inflation. On July 31, she introduced the Bitcoin Strategic Reserve bill, aiming to purchase Bitcoin over five years to reduce the national debt, which has surpassed $35 trillion.
The bill, known as the “BITCOIN Act of 2024,” outlines a plan to integrate Bitcoin into the U.S. financial system by purchasing up to 1,000,000 Bitcoins and holding them for at least 20 years. This initiative hopes to cut the national debt by half by 2045. Despite the political support from figures like Donald Trump and Robert F. Kennedy Jr., Moe Vela, a political advisor, criticizes the proposal as irresponsible.
Supporters argue Bitcoin’s impressive 42.3% annual growth rate could mitigate rising debt, while critics view it as too volatile and unregulated. The debate highlights the potential for digital assets to influence national finance. The long-term impact of such a proposal on the U.S. economy remains to be seen.
