On November 15, there was a remarkable news that the incoming US President Trump and an important ally in the Senate are working together to plan a bold and innovative plan to strengthen the United States' leading position in the field of digital currency while ensuring that this move does not bring additional burdens to the national finances. This ally is Cynthia Lummis, a Republican senator from Wyoming, who is widely praised in the political circle for her forward-looking vision and deep understanding of financial technology.
Senator Loomis has crafted a plan that centers on using some of the Federal Reserve’s gold reserves to fund President Trump’s previously proposed strategic Bitcoin inventory plan in a clever way, all without expanding the government deficit. Specifically, she intends to push for a landmark bill when the new Congress officially takes office next year.
The core content of the bill is to propose that the US government spend a huge amount of money to purchase 1 million bitcoins, which accounts for nearly 5% of the total outstanding bitcoins in the world, which is enough to demonstrate the importance and confidence of the United States in bitcoin, an emerging asset. According to the current market price of bitcoin, this large-scale acquisition will cost about 90 billion US dollars, which is undoubtedly a huge investment, enough to attract widespread attention from the global financial market.
However, Senator Loomis and his team are well aware that once the bill is approved by Congress and enters the implementation phase, the market reaction will be extremely sensitive. They predict that if investors learn in advance that the government is about to purchase Bitcoin on a large scale and rush to buy it before the government takes action, the price of Bitcoin is likely to soar, resulting in the actual acquisition cost far exceeding expectations. Therefore, how to find a balance between confidentiality and market reaction has become the key to the smooth implementation of the plan.
It is worth mentioning that President Trump himself has always had a strong interest in Bitcoin and cryptocurrency. He once delivered a speech at a highly anticipated Bitcoin conference, emphasizing that the United States must take the lead in the development of global cryptocurrency, not only to lead the trend, but also to set industry standards. President Trump also clearly proposed the idea of establishing a strategic reserve of Bitcoin, believing that this would be an important step for the United States to maintain financial security and promote economic growth.
Senator Loomis' plan is undoubtedly a concrete implementation and advancement of President Trump's vision. It not only reflects the U.S. government's deep insight into the future development of digital currency, but also demonstrates the U.S.'s sense of responsibility and commitment as a global economic leader. With the gradual advancement of the bill, the global financial market may usher in an unprecedented change. Whether the United States can successfully seize this historical opportunity remains to be seen.
