Some leading politicians and investors in the US argue that the country should create a Bitcoin (BTC) reserve. This idea has gained attention after being voiced by figures like former President Donald Trump and Senator Cynthia Lummis.
Trump and Senator Lummis’ Statements Await Clarity
Trump, in his speech at the 2024 Bitcoin Conference, proposed converting the US’s current Bitcoin holdings into a “strategic national Bitcoin stock.” He suggested that these holdings could provide a permanent national gain for the US.
Senator Lummis is working on a bill supporting this proposal. The bill aims to increase the US’s current 200,000 BTC holdings to 1 million BTC. Lummis compared this initiative to the “Louisiana Purchase,” calling it a historic opportunity, but there is still no clear explanation on how the bill will be implemented or how it will reduce national debt.
As is known, the US’s current Bitcoin holdings were generally obtained through operations against individuals involved in criminal activities. For example, the US government seized about 95,000 Bitcoins in an operation related to the hacking of the Bitfinex exchange, but there is still uncertainty about how these holdings will be used.
Many Questions Surround the National Bitcoin Reserve
The idea of a national Bitcoin reserve proposed by Trump and Lummis would mean the US accepts Bitcoin as a strategic reserve, but this idea raises many questions such as “how much Bitcoin should be held,” “how should it be obtained,” and “in what situations should it be used.” Rahul Mewawalla, CEO of Mawson Infrastructure Group, stated that answering these questions would be difficult.
Senator Lummis’ bill is unlikely to progress in the current congressional session, but the idea is supported by Bitcoin advocates like Michael Saylor and Cathie Wood. Saylor argues that the US should buy and hold 4 million Bitcoins, while Wood believes that if managed correctly, this could enhance the US’s financial power.
