Senator Cynthia Lummis has introduced the *Bitcoin Act of 2024*, a proposal to create a U.S. Bitcoin reserve. The plan involves selling some of the U.S. government’s gold to buy 1 million Bitcoin, which is about 5% of all the Bitcoin available.
At current prices, this would cost around $90 billion. The government would use its existing financial assets to fund this, meaning it wouldn’t add any new debt. The Bitcoin would be managed by the U.S. Treasury and held for at least 20 years.
Senator Lummis believes that Bitcoin is a better asset for the U.S. than gold because it is decentralized and has a limited supply.
“We already have the financial assets in the form of gold certificates to convert to Bitcoin.” She said.
The Bitcoin would be stored securely across the country in a decentralized way, with special rules for any changes in the Bitcoin system, like forks or airdrops, and it would be kept for five years before any decisions are made on what to do with it.
The *Bitcoin Act of 2024* also lets U.S. states to store their Bitcoin separately. To pay for the Bitcoin, the proposal would use the first $6 billion of the Federal Reserve’s annual remittances to the Treasury from 2025 to 2029. This is meant to help protect the U.S. from inflation while also strengthening its financial position.
The proposal has received more attention because of President Donald Trump’s support for cryptocurrency. Trump has shown interest in creating a Bitcoin reserve, and his ideas might help push the bill forward.
If the plan is approved, it could make Bitcoin more accepted as a financial asset and could inspire other countries to do the same.
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