To combat the rapidly growing national debt and establish America as a powerhouse for financial technology, U.S. Senator Cynthia Lummis has officially introduced in the United States Senate today its plans to inaugurate the Boosting Innovation, Technology and Competitiveness through Optimized Investment Nationwide Act, commonly known as the “BITCOIN” Act, as an established law that designates digital assets free from Federal Taxes.
In what it presumably believes is a historic act of innovative despotism, its new legislation entitles establishing a strategic Bitcoin reserve that will provide an extra jolt to the U.S. dollar. “Bitcoin is transforming not only our country but the world, and it is becoming the first developed nation to use Bitcoin as a savings technology, which secures our position as a global leader in financial innovation,” said Senator Lummis. The adoption of Bitcoin as a national currency promises far more for our Nation than the simple potential economic impact it provides us, “Bitcoin is changing not only this country but its effect on global financial innovation,” and becoming the first world company to BTC reserve status. This is our Louisiana Purchase moment” said Lummis, who wants to introduce a new fiscal frontier. “Our national debt reaches new and unprecedented heights; it is time for us to take bold steps to create a brighter future for generations to come by creating a strategic Bitcoin reserve,” commented Lummis while introducing the bill in Congress.
What is The Bitcoin Act?
The BITCOIN Act to options US balance sheet requires transparent Bitcoin impact under Fed control. The Act directs the Department of Treasury to maintain on its balance sheet an additional gold holding equal in value at the then prevailing market price (to be valued/gold audited annually), which size is to mirror that held by any individual issuer/holder on a pro-rata basis, alongside maintaining and updating as appropriate, utilizing existing technology Bitcoin vaulted reserves. The program will be funded by temping funds from existing Federal Reserve and Treasury Department programs. The Act also recognizes the self-custody rights of private Bitcoin holders to prevent the Strategic Reserve from overriding individual financial freedoms.
Senator Lummis Declares Bitcoin the New Gold Standard for America’s Financial Future
Advertisement
In an interview with CNBC’s Crypto World Segment, Senator Lummis described the BITCOIN Act as a ‘discussion draft’ intended to gauge the Senate’s reaction and allow for potential amendments. She emphasized that while the Act will not be formally considered this year, it is slated for discussions at the start of January next year. “If we held a million bitcoins in twenty years, we would have enough money to reduce the national debt in half,” said Lummis. She further backed her stance by letting her know that Bitcoin is ‘new’ and is open to criticism and debate around it.
Bitcoin shows the potential to aid with ballooning national debt by serving as a digital reserve akin to gold. Its inherent scarcity and lack of centralized control position it as a reliable store of worth, potentially bolstering the value of the U.S. dollar and supplying an alternative means to manage and reduce towering national obligation. During a recent hearing, the Senator reaffirmed her pro-cryptocurrency stance, stressing that the administration retains 200,000 bitcoins as hard assets but aims to multiply this cache to 1,000,000 bitcoins within half a decade. These strategies are designed to back U.S. dollars with Bitcoin alongside gold holdings, maintaining both in cold storage.
Advertisement
While cryptocurrency has finally made its way to traditional finance, a looming question ponders: Can Bitcoin really save America from bankruptcy? Find out!
