Wyoming Senator Cynthia Lummis has announced her intention to introduce a bill directing the US Treasury to purchase 1 million Bitcoins, equivalent to approximately $68 billion at current prices. The proposed law aims to counter the effects of dollar depreciation over a five-year period.
Senator Lummis said in his statement:
Bitcoin is a great store of value. It has increased by about 55% per year over the last four years. During the same period, the value of the US dollar fell and we saw inflation rise. “So having an asset that supports the U.S. dollar and increases in value rather than decreases, I think, would be very valuable.”
Senator Lummis, a long-time supporter of Bitcoin since purchasing his first coin in 2013, has been at the forefront of attempts to pass crypto-specific legislation. Cryptocurrency has become a major election issue this year, especially after former President Donald Trump supported the industry.
The proposed legislation would require the U.S. Treasury to self-custody Bitcoins in various geographic locations. The government will hold these coins for at least 20 years unless they are sold to reduce the national debt.
*This is not investment advice.
