At the Bitcoin 2024 conference, Senator Cynthia Lummis proposed a more detailed plan to create a strategic reserve of Bitcoin to back the US dollar and cement America’s global financial leadership.
After days of anticipation, US Senator Cynthia Lummis has finally announced Advertise Loomis has proposed legislation to create a strategic reserve of Bitcoin (BTC). Loomis said the proposal aims to bolster the US dollar against inflation and strengthen America’s leadership in the global financial system.
The announcement, made yesterday, July 27, the final day of the Bitcoin 2024 conference in Nashville, comes amid a wave of pro-crypto sentiment, which was amplified by a keynote speech by former President Donald Trump, in which he expressed strong support for the crypto industry. At the end of his speech, Trump also unveiled a plan to create a national Bitcoin reserve in the United States, but he did not elaborate on the proposal.
Bitcoin strengthens the US dollar’s position globally
After Trump’s announcement, Loomis took to the stage and explained that the Bitcoin Reserve proposal seeks to secure the US dollar’s place as the global reserve currency by incorporating Bitcoin into the country’s strategic reserves.
“Creating a strategic reserve of Bitcoin would solidify the dollar’s position as the global reserve currency in the 21st century and ensure we remain the global leader in financial innovation,” the Wyoming senator said.
Its plan involves the US Treasury creating a decentralized network of secure Bitcoin vaults, acquiring 1 million Bitcoins over a set period, and storing these assets for at least 20 years.
Loomis explained that the only permitted use of this reserve is to pay down the national debt, financed by diversifying existing Federal Reserve and Treasury funds.
In her remarks, the senator highlighted the urgency of this initiative by pointing to the economic challenges facing American families and the country’s high debt levels:
“Families across Wyoming and the United States are struggling to keep up with high inflation and record costs as 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.”
US Senator Cynthia Lummis speaks at the Bitcoin 2024 conference in Nashville on July 27
Trump Promises to Create National Bitcoin Reserve
The senator’s announcement came just as former President Donald Trump took the stage to deliver his long-awaited keynote address. Trump, who kept the crowd waiting for an hour — apparently while his security team conducted final checks — took the opportunity to reiterate his commitment to turning the United States into a global leader in cryptocurrencies.
The 2024 Republican presidential candidate also announced his plan to create a “national strategic stockpile of bitcoin” if elected.
He said it would be his policy to keep all bitcoins currently in U.S. custody and any that the United States might acquire in the future. The accumulated bitcoins would then form the core of a national strategic reserve of bitcoins.
Trump also promised to reform the current regulatory environment, including removing current SEC Chairman Gary Gensler, who has been criticized for his aggressive approach to the crypto industry.
Back-to-back announcements from Trump and Loomis have added significant momentum to the crypto discourse, signaling a potential shift in the US approach to digital assets.
