Strategic Bitcoin Reserve Wouldn't Require New Taxpayer Dollars, Says Sen. Cynthia Lummis

Wyoming Republican Senator Cynthia Lummis (R-Wyo.) on Thursday proposed converting Federal Reserve-held gold certificates into Bitcoin to establish a 20-year strategic Bitcoin BTC/USD reserve.

In an interview with CNBC, Lummis outlined how this initiative could bolster the US economy, reduce national debt and position Bitcoin as a key asset for the country.

Gold-To-Bitcoin Conversion: A Debt-Free Solution

Lummis stressed that the proposal wouldn't require new taxpayer dollars.

Instead, the government could leverage its existing resources, particularly gold certificates held at the Federal Reserve's 12 banks.

These certificates, currently valued at 1970s prices, could be updated to reflect their fair market value, sold and reinvested into Bitcoin.

"We wouldn't have to spend any new dollars," she explained, pointing out that the United States already holds over 200,000 Bitcoin in asset forfeiture funds, which could act as a foundational reserve.

Lummis also emphasized the fiscal prudence of the strategy: "This would be an asset that could help shore up the US dollar as the world reserve currency."

Also Read: Paying $6.24 Million For A Duct-Taped Banana? Justin Sun Did Just That — And Now He’ll Eat It ‘As Part Of This Unique Artistic Experience’

The Case For A Strategic Bitcoin Reserve

Highlighting Bitcoin’s unique properties, Lummis described it as immutable, easily stored, and a hedge against inflation.

She believes a strategic Bitcoin reserve could mitigate inflation’s effects, provide financial stability and potentially strengthen the US dollar's global standing.

"American people are still hurting from inflation, from high prices, and they want the national debt reduced," Lummis said. "These are ways to do it with an asset that is immutable and can easily be held by the federal government in a variety of vaults."

Lummis compared the proposal to the historical gold standard, noting its relevance in today's digital age. "We got off the gold standard a long time ago, but this would be a way to create a reserve for the future," she said.

Addressing Ethical Concerns

When asked about potential conflicts of interest, given the growing adoption of Bitcoin among policymakers, Lummis argued for transparency and fairness.

She revealed that her personal Bitcoin holdings are in a blind trust, ensuring her ability to advocate for the cryptocurrency without bias.

"Bitcoin is legal tender in another country. We need to recognize that as Americans," she stated.

Lummis compared Bitcoin ownership to commodities like cattle, noting that ethical ownership policies can coexist with advocacy.

"Quite frankly, I believe it should be okay for people to own Bitcoin without doing what I did and putting it in a blind trust."

Read Next:

• Coinbase CEO Brian Armstrong ‘Stands Out’ As Candidate For Donald Trump’s Reported ‘Crypto Czar’ Position, Cardano Co-Founder Says

Image: Shutterstock