Just In: Senator Cynthia Lummis Proposes Fed Gold Sale To Buy 1M Bitcoin

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As a seasoned researcher with over two decades of experience in the financial sector, I find Senator Cynthia Lummis’ proposal intriguing, to say the least. Having witnessed the evolution of digital currencies from their infancy, I can appreciate the potential strategic value such an investment could hold for the nation.

Senator Cynthia Lummis from Wyoming is advocating for a strategy where some of the Federal Reserve’s gold reserves could be utilized to buy approximately one million Bitcoins, with the aim of establishing a national strategic digital currency reserve.

Cynthia Lummis, who supported President-elect Donald Trump, proposed this idea as a method to boost the federal government’s Bitcoin holdings without increasing the national debt. This action was taken during Bitcoin’s recent surge in value, reaching an unprecedented high of $93,500, following Trump’s victory in the election.

Cynthia Lummis Proposes Fed Gold Sale To Buy 1M Bitcoin

Based on a Bloomberg report, Senator Lummis intends to propose a law allowing the sale of some Federal Reserve gold holdings. The money from this sale would then be used to purchase Bitcoin. This legislation, referred to as the BITCOIN Act (Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide), would permit the acquisition of up to one million Bitcoins.

According to Cynthia Lummis, it’s roughly estimated that the cost would be approximately $90 billion considering today’s prices. However, if the market predicts government intervention, the total could potentially increase.

According to Lummis, tapping into current gold reserves could enable the government to accumulate Bitcoins without further expanding the country’s budget shortfall.

Lummis stated during an interview that we currently possess gold certificates which can be exchanged for Bitcoin.

She pointed out that because the Federal Reserve’s gold reserves are assessed at a legislated price significantly lower than their actual market worth, there is ample gold available for acquisition without jeopardizing financial stability.

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2024-11-14 22:15