US senator to propose 1-million-unit Bitcoin purchase program

A US senator said Saturday she would soon introduce legislation to implement a "1-million-unit Bitcoin purchase program" for a set period.

The proposal by Cynthia Lummis is intended to "supercharge the U.S. dollar" by establishing a strategic Bitcoin reserve to fortify the dollar against rising inflation, and "cement U.S. leadership in the rapidly evolving global financial system," according to a statement.

While the amount is worth more than $68 billion at the current price of Bitcoin, the program would look to acquire a total stake of approximately 5% of total Bitcoin supply, mirroring the size of gold reserves held by the US.

"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," said the Republican senator from the state of Wyoming.

"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," she told the Bitcoin 2024 Conference in Nashville, Tennessee.

Lummis serves on the Senate Committee on Banking, Housing, & Urban Development; Senate Committee on Commerce, Science, & Transportation; and Senate Committee on Environment & Public Works, according to her website.

She is focused on lands, energy, natural resources and finance and technology issues like Bitcoin and digital assets.

The legislation also includes establishing a decentralized network of secure Bitcoin vaults operated by the Treasury Department with statutory requirements, ensuring the highest level of physical and cybersecurity for the nation’s Bitcoin holdings, according to the statement.

It also aims to affirm self-custody rights of private Bitcoin holders, emphasizing that the strategic Bitcoin reserve shall not infringe upon individual financial freedoms.

The bill will be paid for by diversifying existing funds within the Federal Reserve System and the Treasury Department, said the statement.

"The United States currently maintains strategic reserves in certain hard assets critical to American national security and independence such as gold and petroleum. Establishing a strategic Bitcoin reserve to bolster the U.S. dollar with a digital hard asset will secure our nation’s standing as the global financial leader for decades to come," it said.

"This strategic Bitcoin reserve would be required to hold onto the bitcoin for 20 years, the only thing it could be used to pay for during that time period is paying down our country’s national debt," it added.