U.S. Senator Cynthia Lummis has floated an ambitious idea that places Bitcoin at the center of America’s long-term financial strategy.
She believes that building a national reserve of the cryptocurrency could drastically reduce the country’s $37 trillion debt burden.
Her vision calls for the U.S. government to amass one million Bitcoins – roughly 5% of the total supply – and hold them untouched for two decades. Based on her projections, such a reserve could eventually wipe out nearly half of the nation’s outstanding debt, providing what she described as a long-overdue fiscal reset.
Lummis suggested that the groundwork for this plan could begin immediately. She pointed to Bitcoin and other digital assets already in federal custody, such as those seized by the U.S. Marshals Service, as a potential foundation for a “Strategic Bitcoin Reserve.” From there, she proposed that additional government assets could gradually be converted into Bitcoin to build up the reserve over time.
The senator emphasized that some early steps could be executed using existing executive powers, without waiting for new legislation. However, she warned that a long-term legal framework would still be essential to ensure the reserve’s permanence. “Codifying a strategic Bitcoin reserve into law is critical,” she argued, noting that it would prevent future administrations from dismantling the initiative.
Lummis’ proposal highlights a bold and unconventional use case for Bitcoin: treating it not as a speculative investment, but as a sovereign reserve asset comparable to gold or foreign currency holdings. If enacted, the move would mark the first time a major government directly tied its fiscal recovery strategy to Bitcoin, potentially reshaping global perceptions of the cryptocurrency.
While the idea remains theoretical, the proposal underscores a growing debate in Washington over how digital assets might influence America’s economic future. Supporters see Bitcoin as a hedge against inflation and currency debasement, while critics warn of volatility and regulatory uncertainty. For Lummis, however, the vision is clear: Bitcoin could be the key to restoring balance to the U.S. balance sheet.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/u-s-senator-suggests-stockpiling-1-million-btc-to-slash-national-debt/