Gushiken Yona
Sen. Cynthia Lummis (R-Wyo.) has proposed legislation that would require the U.S. government to acquire 5% of the world’s Bitcoin supply and hold it for at least two decades. This bold move comes amid growing concerns about the dollar’s global dominance and at a time when politicians are increasingly leveraging cryptocurrency to attract voters.
Sen. Lummis, a vocal proponent of cryptocurrency, unveiled the ambitious plan to reduce the U.S. national debt during the Bitcoin 2024 conference in Nashville. According to the senator, her proposal, if enacted into law, “can be used for one purpose, to reduce our debt.”
The plan involves acquiring 1 million Bitcoin over five years, representing approximately 5% of the total Bitcoin supply. This aggressive strategy underscores Lummis’s continued push to integrate digital assets into the nation’s financial framework.
Ensuring the Dollar’s Dominance
“Establishing a strategic Bitcoin reserve would firmly secure the dollar’s position as the world’s reserve currency into the 21st century and ensure we remain the world leader in financial innovation,” Lummis said in a statement last Sunday. She added, “Families across Wyoming and the U.S. are struggling to keep up with soaring inflation rates and record-breaking costs while our national debt reaches unprecedented levels; now more than ever, we need to create a brighter future for generations of Americans by diversifying into Bitcoin and securing our economic future.”
But how will they do it?
“This Bitcoin Reserve that we are going to create will start with the 210,000 Bitcoin that President Trump just mentioned and pull it into a reserve, stored in geographically diverse vaults, and that’s only the beginning,” Lummis said. She emphasized the strategic shift from holding U.S. dollars to investing in Bitcoin, which she believes will appreciate over time.
Lummis explained that the plan involves converting excess funds from the 12 Federal Reserve banks into Bitcoin over a period of five years. “This is the solution. This is the answer. This is our Louisiana Purchase moment!” she declared.
The Dollar’s Enduring Strength
Despite growing concerns about the potential dethronement of the dollar by rivals, U.S. investment bank Morgan Stanley, remains steadfast in its belief in the dollar’s enduring dominance. Critics have argued that the dollar’s status as the primary currency for central banks and international trade could erode. However, the firm’s strategists contend that several factors continue to underpin the dollar’s strength.
“Which currency would you want to own when global stock markets start to fall, and the global economy tends to head into recession? You want to be positioning in U.S. dollars because that has historically been the exchange rate reaction to those kinds of events,” emphasized James Lord, global head of FX & EM Strategy at Morgan Stanley.
Echoing this sentiment, Michael Zezas, the firm’s global head of fixed income research, declared, “Bottom line, King dollar doesn’t really have any challengers.”
Read More
- Shiba Inu on Fire: Whale Activity Up 62%, Shibarium Contracts Explode Triple-Digit
- Shiba Inu Nears Crucial Support, Price Revesal Imminent: Crypto Analyst
- RFK Jr. Unveils Plan to Bitcoinize America By Executive Order
Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
