Wyoming Senator Cynthia Lummis has said that coming up with a US strategic Bitcoin reserve could help reduce the US national debt which surpassed a whopping $35 trillion.
Reports indicated that the US national debt has crossed the $35T mark for the first time. The data creates concerns over the ability of the US to narrow down this debt burden, and the effect it could have on the economy.
However, Senator Lummis believes that Bitcoin could solve the US debt problem.
Senator Lummis Says US Bitcoin Reserve To Solve $35T Debt Crisis
In an X post, the Wyoming Senator stated that if the US government adopted Bitcoin, it would help the country repay the national debt and help future generations.
“A strategic Bitcoin reserve could stop this runaway train and help pay down the national debt for our future generations,” Lummis said.
During the Bitcoin 2024 conference in Nashville last week, Lummis unveiled plans to table a bill that will see the US government purchase 1 million Bitcoin.
The Senator stated that the legislation would enable the US Treasury to buy Bitcoin over five years and hold it as a strategic reserve asset to support the value of the US dollar. Lummis noted that Bitcoin could serve the same function to the US economy as the petroleum reserve.
According to Lummis, the US government would self-custody its Bitcoin across multiple locations. These assets should also go towards paying the national debt. She stated that the said assets would be held for more than two decades if the bill was approved.
Lummis has been a main proponent of BTC over the years. She believes that the largest crypto by market cap could also help fight the rising levels of US inflation.
Former US President Trump Wants A Bitcoin Stockpile
Lummis was not the only speaker at the Bitcoin 2024 conference who believes that the US government should hold Bitcoin.
Former US President Donald Trump was the main speaker during the event and he gave his speech on the final day of the conference. Trump noted that the US government was among the largest holders of Bitcoin, with 210,000 coins seized by law enforcement authorities.
Trump noted that if he is elected president in November, he will ensure that the US government holds and never sells its Bitcoin. He also said that these coins will be part of a strategic Bitcoin stockpile or a reserve.
During the speech, Trump pointed out that the cardinal rule of every person who has invested in Bitcoin is to never sell their coins.
The pro-crypto take by Republicans and Trump has stirred a shift in the political climate around cryptocurrencies. Democrats are now slowly joining the crypto space in hopes of also wooing the crypto community.
