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The US government is taking a bold step towards embracing Bitcoin as a strategic asset by proposing the creation of a national reserve and supporting state-level treasury bills.
In a significant move, Senator Cynthia Lummis has introduced the Boosting Innovation, Technology, and Competitiveness Through Optimized Investment Nationwide (BITCOIN) Act of 2024. The proposed legislation aims to establish a Strategic Bitcoin Reserve with the goal of acquiring 1 million Bitcoins over the next five years. This reserve would operate through secure storage vaults and purchase programs.
It is essential to note that the US government already holds an estimated $21 billion in Bitcoin, primarily derived from seized criminal assets. These existing holdings could potentially be integrated into the strategic reserve if the legislation passes.
The plan’s funding mechanism involves reallocating existing Federal Reserve assets, including bonds and gold reserves. This move would not create new debt but instead reallocate existing resources to support the development of a national digital asset reserve.
In an interview with our publication, Senator Lummis expressed her optimism regarding 2025 as a crucial year for Bitcoin adoption. She emphasized that it is essential to have comprehensive legislation in place and encouraged close collaboration between the government and the private sector.
The US government’s existing presence in the cryptocurrency space should provide a solid foundation for expanded involvement in digital assets. The state-level initiatives offer an additional layer of complexity, as each jurisdiction takes its own approach to integrating Bitcoin into their financial systems.
In Texas, lawmakers are proposing a reserve fund that will be maintained through donations and allow taxpayers to make payments in Bitcoin. Pennsylvania has also put forth a bill allocating up to 10% of the state’s treasury reserves to Bitcoin as a means of protecting against inflation.
Ohio is making progress on its own initiative by supporting Bitcoin reserve plans. The move is aimed at reducing risks associated with inflation, which could potentially have devastating effects on the economy if left unchecked.
The recent price surge of Bitcoin, which has exceeded $100,000 for the first time, has attracted increased attention from government officials and institutional investors alike. This shift in sentiment could lead to a more favorable regulatory environment, paving the way for greater adoption of digital assets.
As the year 2025 approaches, it is clear that Bitcoin’s role within the financial system is evolving rapidly.
Source: blockonomi.com
