Can Bitcoin help reduce the $33 trillion debt of the United States? Senator Cynthia Lummis believes it can, and she has outlined a bold plan to make it happen.
In a recent interview with Bloomberg, Lummis revealed a proposal to create a US Bitcoin reserve fund, aiming to secure one million BTC, accounting for about 5% of the total supply, over the next 20 years.
Her vision is not limited to investment. It is about turning Bitcoin into a strategic asset that can reshape the financial future of the nation.
Use government cryptocurrency to kickstart the Reserve
Lummis proposes to start the reserve with digital assets that the US Marshals Service has held, specifically from seized asset funds. These funds, some of which are cryptocurrency, could lay the foundation for the first year without the need for immediate new legislation.
However, she acknowledges that clear legal protections will be needed later to keep the reserve safe from political changes.
Why only Bitcoin? Lummis makes her case
Lummis emphasizes that this reserve should focus solely on Bitcoin. Why? Because of its proof-of-work mining model, which makes it safer and more reliable than other cryptocurrencies.
In her view, Bitcoin stands out as the best option for long-term national reserves. At the core of Lummis's plan is to buy and hold one million Bitcoin over 20 years. She believes that if the value of Bitcoin increases as expected, the US could use the reserve to cut the national debt in half.
Lummis also ties this idea to a global strategy, stating that the US Bitcoin reserve could be as important as oil reserves, particularly in the context of ongoing economic competition with China.
She stated that senior US military officials in Southeast Asia support this idea and view Bitcoin as a valuable strategic asset.
A nod to Trump
Lummis continues to praise President Donald Trump for his initial investments in Bitcoin. She calls him a progressive thinker when it comes to digital assets and encourages more Americans to see the value in early adoption of cryptocurrency.
She believes that as the digital economy develops, this mindset will become increasingly important.
If this plan succeeds, it could mark a significant shift in how the US manages its economy and how Bitcoin is viewed as a tool of national strength.
