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Lummis Proposes Strategic Bitcoin Reserve Funded by Gold Sales
The post Lummis Proposes Strategic Bitcoin Reserve Funded by Gold Sales appeared on BitcoinEthereumNews.com. Cynthia Lummis has unveiled a bold plan to fill the president-elect’s proposed strategic Bitcoin reserve—without adding a cent to the national deficit. The strategy? Sell off a portion of the Federal Reserve’s gold stash. In other words, sell the past, but the future. Republican Senator Cynthia Lummis of Wyoming aims to introduce a bill when Congress convenes next year, calling for the U.S. to purchase 1 million Bitcoin, roughly 5% of the total supply. At current prices, the acquisition would cost around $90 billion, though this figure could skyrocket if investors preempt the government’s buying spree. Source: X “We have the assets—gold certificates—to convert into Bitcoin without affecting the U.S. balance sheet,” Lummis told Bloomberg. Her proposal significantly expands Trump’s initial idea of a strategic Bitcoin reserve, which involves holding the 200,000 tokens seized from criminal activities. Under Lummis’ plan, the government would hold Bitcoin for 20 years, banking on its value to offset national debt over time. Bitcoin’s Value Proposition Meets Skepticism Despite a crypto-friendly White House and what the industry hopes will be the most pro-crypto Congress yet, Lummis’ bill faces a tough road. Polymarket, a crypto prediction platform, gives only a 31% probability that Trump’s Bitcoin reserve will materialize. Source: Polymarket Could a U.S. Bitcoin Reserve Trigger a Global Race? Crypto mogul Michael Novogratz, head of Galaxy Digital, is doubtful but intrigued. He speculates that if the U.S. establishes a Bitcoin reserve, it could catapult Bitcoin’s value to $500,000 as other nations rush to build their own reserves. “Such a move would redefine global finance,” Novogratz said. In theory, the U.S. has ample gold reserves to fund this ambitious pivot. The Fed holds gold certificates valued at $11 billion based on a 1973 statutory price of $42.22 per ounce. At current market rates, the gold is worth…
The post Lummis Proposes Strategic Bitcoin Reserve Funded by Gold Sales appeared on BitcoinEthereumNews.com.
Cynthia Lummis has unveiled a bold plan to fill the president-elect’s proposed strategic Bitcoin reserve—without adding a cent to the national deficit. The strategy? Sell off a portion of the Federal Reserve’s gold stash. In other words, sell the past, but the future. Republican Senator Cynthia Lummis of Wyoming aims to introduce a bill when Congress convenes next year, calling for the U.S. to purchase 1 million Bitcoin, roughly 5% of the total supply. At current prices, the acquisition would cost around $90 billion, though this figure could skyrocket if investors preempt the government’s buying spree. Source: X “We have the assets—gold certificates—to convert into Bitcoin without affecting the U.S. balance sheet,” Lummis told Bloomberg. Her proposal significantly expands Trump’s initial idea of a strategic Bitcoin reserve, which involves holding the 200,000 tokens seized from criminal activities. Under Lummis’ plan, the government would hold Bitcoin for 20 years, banking on its value to offset national debt over time. Bitcoin’s Value Proposition Meets Skepticism Despite a crypto-friendly White House and what the industry hopes will be the most pro-crypto Congress yet, Lummis’ bill faces a tough road. Polymarket, a crypto prediction platform, gives only a 31% probability that Trump’s Bitcoin reserve will materialize. Source: Polymarket Could a U.S. Bitcoin Reserve Trigger a Global Race? Crypto mogul Michael Novogratz, head of Galaxy Digital, is doubtful but intrigued. He speculates that if the U.S. establishes a Bitcoin reserve, it could catapult Bitcoin’s value to $500,000 as other nations rush to build their own reserves. “Such a move would redefine global finance,” Novogratz said. In theory, the U.S. has ample gold reserves to fund this ambitious pivot. The Fed holds gold certificates valued at $11 billion based on a 1973 statutory price of $42.22 per ounce. At current market rates, the gold is worth…
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