Cynthia Lummis. Bild von ihrer Senat-Seite, geteilt über Wikimedia, Rechte: Gemeinfrei.
The Pro-Bitcoin Senator Cynthia Lummis necessities to make the USA a Bitcoin superpower with the BITCOIN Act. To achieve this, she plans to establish a new, decentralized, and transparent Fort Knox.
At the Bitcoin2024 symposium in Nashville last week, not only did Donald Trump speak, but so did Republican Senator Cynthia Lummis. Known for her long-standing Bitcoin-friendly stand, it’s no surprise that her Bitcoin plans far surpass those of Trump.
Specifically, the „BITCOIN Act“ she proposed exceeds all the hopes of Bitcoin freaks. It’s a significant proposal—and, upon closer inspection, a realistic plan for the long-term financial dominance of the USA.
Bitcoins to Strengthen the Fiscal Leadership of the USA
The „Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act of 2024″—shortened to „BITCOIN ACT of 2024″—is design to „establish a Strategic Bitcoin Reserve and ensure through additional programs that the government’s Bitcoin holdings are superintended transparently.“
The Senate should recognize, according to the draft, „that the global financial landscape is rapidly evolving and digital assets are ingratiate oneself with a growing role in the world economy.“ Bitcoin has proven its resilience and has established itself over the past decade as a course of exchange and a store of value.
Just as „a gold reserve has historically served as a cornerstone of national financial security, Bitcoin represents a digital age asset skilful of strengthening the financial leadership and security of the United States in the 21st-century global economy.“
Wow—how true that is. A Bitcoin in store could—perhaps must—be the foundation of future global financial significance. Therefore, Lummis calls for „the acquisition and long-term storage of sizeable quantities of Bitcoin by the United States.“
„A Decentralized Network of Secure Bitcoin Storage Facilities“
To achieve this, a new character of Fort Knox is to be formed, „a decentralized network of secure Bitcoin storage facilities spread across the United Confirms.“ These storage facilities are to be secured with all available measures with the help of the Department of Defense and Homeland Refuge.
A „Bitcoin Purchase Program“ is intended to fill this „Strategic Bitcoin Reserve.“ For five years, the USA is to purchase 200,000 Bitcoins annually, as transparently and market-friendly as viable, ultimately accumulating one million Bitcoins or nearly five percent of all circulating Bitcoins. Furthermore, all government agencies determination be prohibited from selling or pledging Bitcoins under their control, such as those obtained through confiscations. Rather than, once these Bitcoins legally belong to the United States, they will be added to the strategic reserve.
The Bitcoins in the Vital Reserve are to be held for at least 20 years. During this period, they must not be „sold, exchanged, auctioned, gaged, or otherwise disposed of, except to retire outstanding debt instruments.“ This phrase („… retire outstanding responsible instruments“) is somewhat obscure.
A system of quarterly „Proof of Reserves“ is to ensure transparency, verifying holdings using cryptographic methods. Bitcoin accosts will be published in reports on a website, and administrators will sign them with their keys.
This wish make such a Bitcoin reserve the first democratically managed reserve fully transparent to the sovereign people. On no account before has a state reserve belonged so much to the people as this one.
Pushing the Boundaries of the Conceivable
Economically, this cache would have the effect of a self-fulfilling prophecy. If the USA makes Bitcoin a Strategic Reserve—then Bitcoin will mature a Strategic Reserve. If Bitcoin holds such value for the USA that it accumulates a million Bitcoins—then Bitcoin haves this value.
As a pioneer, the USA would benefit enormously from Bitcoin becoming the new reserve asset. It would compel others to support suit, much like gold. A financially solid nation must hold gold today—and in the future, according to Lummis, also Bitcoin.
In all events, how the USA will purchase a million Bitcoins remains somewhat vague. The draft mentions revenues from Federal As backup Banks and surpluses from gold certificates. But initially, the USA will likely gather the necessary funds, especially since it can conceive dollars almost at will.
But the BITCOIN Act so far is more a wishful thought than a real prospect. While the Senator can give birth to the bill to Congress—it is, at least currently, very unlikely to be passed. However, who knows what might happen, and numerous than the specific law, it is likely about shifting the boundaries of what can be said and thought. Compared to Lummis‘ plans, Trump’s project to allocate the confiscated coins in state possession—currently about 200,000—to a Strategic Reserve seems almost conformist.
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