7h10 ▪
4
min reading ▪ by
Luc Jose A.
The idea of placing Bitcoin at the heart of American strategic reserves could shake up global financial paradigms. This is the bold proposal from Senator Cynthia Lummis, a fervent supporter of cryptos, who suggests transforming part of the United States' immense gold reserves into Bitcoin. Such a debate, far from being trivial, is open in a context of astronomical debts and rapid inflation, which places digital innovation face to face with traditional systems.
A historic proposal for the US Treasury
Republican Senator Cynthia Lummis, known for her unwavering support for Bitcoin, made a recent statement that could constitute a watershed change in the economic history of the United States. Indeed, during an interview with Bloomberg, she suggested that the US Treasury convert part of the gold certificates into Bitcoin. In addition, she insists that this transition would be “neutral” for the government’s balance sheet. Thanks to the use of these certificates rather than cash, the operation would avoid burdening already fragile public finances.
With more than 8,000 tonnes of gold held by the US Treasury, the largest reserve in the world, Lummis is proposing an unprecedented strategic shift. It aims to acquire 1 million bitcoins, or 5% of the total available supply, an investment estimated at $90 billion at current prices. For her, this strategic reserve in Bitcoin is essential in the face of “exponential inflation and the dizzying rise in the national debt”.
The challenges and prospects of a strategic Bitcoin reserve
If this initiative appeals to supporters of cryptos, it nevertheless triggers major objections. Critics point to the intrinsic volatility of Bitcoin, perceived as a risk for public finances. However, for investors like Anthony Pompliano, CEO of Professional Capital Management, this risk is justified. According to him, “investing $50 to $100 billion in Bitcoin is a small cost compared to the $850 billion added to the national debt in just 90 days.”
The idea goes beyond a simple acquisition. It embodies a strategic response in a global race to accumulate Bitcoin, a finite resource. Other countries could be tempted to follow this example, which transforms crypto into an essential asset on the geopolitical scene. Some observers believe that if such a project were adopted, it could propel the price of Bitcoin beyond $500,000, and redefine global financial balances.
Cynthia Lummis' proposal illustrates the clash of economic models between a monetary system based on gold and the emergence of cryptos. It asks a crucial question: is Bitcoin ready to become a cornerstone of public finances? If this idea were to materialize, it could initiate a profound reconfiguration of national reserve strategies. A step into the unknown, but perhaps necessary, in the face of unprecedented economic challenges.
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Luc Jose A.
A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I took the commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to relay the latest technological innovations and to put into perspective the economic and societal issues of this ongoing revolution.
