Pro-Christian Senator Cynthia Lummis stated that Bitcoin’s strategic reserve could serve as a financial safeguard and a means of addressing the fiscal mismanagement of past generations of the United States (USA).

Lumis believes that the reserve could mainly help to correct the economic charges imposed on younger generations, especially national debt.

Bitcoin Reserve Initiative

In a recent interview, Lummis explained that a Bitcoin strategic reserve could reduce current debt in half. By 2025, US national debt is over $ 36 trillion.

Wyoming’s Republican suggested that the US could take advantage of Bitcoin’s appreciation to support the US dollar as a world reserve currency. She considers this crucial to maintaining mainly economic stability and favorable commercial advantages.

This ensures that the US dollar is the most accepted currency worldwide, and then, with Bitcoin supporting it and being a global means of exchange and reserve of value, gives us this double support for the US dollar, Lummis said.

In addition, she mentioned Bitcoin’s annual historical growth rate of approximately 55%. However, she acknowledged that this rate will gradually decrease. According to Lummis, it could drop to 45%, 35%, 25%, and so on in the next two decades.

Despite a decline growth curve, the senator believes that a $ 1 million Bitcoin reserve today could be approximately half of US national debt in 20 years. She also noted that Robert F. Kennedy Jr. used a similar model. Therefore, Lummis designed that a larger reserve could potentially eliminate all debt.

I see a strategic Bitcoin reserve and its ability to grow and help me correct the mistakes my generation made by leading us to this terrible debt. It is the only vehicle that I see that can have this effect consequent, he said.

On July 31, 2024, Senator Lummis introduced Bitcoin Act, proposing the establishment of a reserve of 1 million bitcoins. Last month, she also became the first president of the Senate Bank Subcommittee on digital assets.

Meanwhile, support for a Bitcoin strategic reserve is growing. At the state level, 15 states publicly endorsed it, shared the founder of Satoshi Action Fund, Dennis Porter, in X (former Twitter).

At least 11 American states have introduced bills to establish a Bitcoin strategic reserve. In addition, Arizona and Utah approved proposals through committees.

According to Porter, more than 3,300 letters were sent to members of Congress arguing that Bitcoin is recognized as part of a strategic stock. This occurs after President Donald Trump signs an executive order to establish a “national inventory of digital assets” without specifying bitcoin.