Wyoming Senator Cynthia Lummis has recently instigated that the United States Treasury Department should consider converting a section of its over 8,000 tons of gold reserves into Bitcoin, forming a structural Bitcoin reserve. She emphasized to Bloomberg that by transforming gold certificates into Bitcoin, the immediate effect on the US government’s balance sheet would remain steady, contrasting spending approximately $90 billion to buy Bitcoin with today’s market rates.
Previously, Lummis had proposed that the Treasury should convert some of its equity to acquire Bitcoin for the strategic reserve. However, she hadn’t clarified which equity of the Treasury should be sold to procure more cryptocurrency.
The mention of the Strategic Bitcoin Reserve bill in the Senate had Lummis stating that the reserve’s establishment was critical. This is even more significant considering families across Wyoming are struggling amidst escalating inflation rates while the national debt continues to skyrocket.
The Bitcoin strategic reserve initiative spearheaded by Lummis also includes stipulations to procure 5% of the total Bitcoin supply, which equals to 1 million Bitcoin. This amount will be retained for a span of 20 years.
Asset manager and investor Anthony Pompliano recently debated that amid the sovereign governments, there is a worldwide vying for Bitcoin. In his view, the multi-billion price ticket is a minor price to pay considering the national debt had risen by $850 billion over the past 90 days.
However, contrary to this, Galaxy Digital CEO and founder Mike Novogratz expressed doubts that a Bitcoin strategic reserve would materialize under the incoming President Donald Trump. But if such a reserve does get instigated, Novogratz theorizes that Bitcoin’s price might spike up to $500,000 per Bitcoin.