Wyoming US Senator Cynthia Lummis is proposing that the United States sell part of its gold reserves to finance the purchase of 1 million bitcoin (BTC), representing approximately 5% of the total BTC supply in circulation.
In one interviewLummis explained that they already have “the financial assets in the form of gold certificates to convert to bitcoin,” suggesting that the impact of the sale on the nation’s balance sheet would be “fairly neutral.”
The investment in 1 million BTC is estimated at about USD 90 billion at the current market price, a figure that would not significantly affect the US gold balance, given the current value of that country’s reserves. which amounts to about 675,000 million dollars in that precious metal.
Now, the large-scale sale of gold by the US government could negatively influence its price which marked historical highs, as reported by CriptoNoticias.
The Lummis project Donald Trump’s proposal is aligned and expandedthe president-elect of the United States, who had promised during his campaign to create a strategic reserve with the 200,000 BTC seized by the government.
Lummis presented his proposal, known as the BITCOIN Law (Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide), in July of this year, as reported by this media.
These regulations establish the creation of a bitcoin reserve and the acquisition of 1 million coins, which will become part of a treasury asset of that North American nation.
The senator is optimistic about the support your initiative could receive in the new Congress, with a Republican majority and which begins sessions on January 3; mentioning that “Trump has already endorsed the idea of a reserve and his closest advisors include people who understand bitcoin and its role in our future,” reports Bloomberg.
This proposal has generated mixed reactions. Mike Novogratz, CEO of Galaxy Digital, expressed skepticism about the viability of a strategic bitcoin reserve in the US, although he noted that, if implemented, could take the price of BTC up to USD 500,000due to the domino effect it could have on other nations to create similar reserves.
“I think there is a low probability that the United States will establish a strategic reserve of bitcoin,” Novogratz commented, suggesting that, even so, The issue could push the price of BTC up to $250,000.
Lummis also anticipates a change in the makeup of Congress, indicating that new members are arriving, including Bernie Moreno of Ohio and Tim Sheehy of Montana, “who understand digital assets.”
His optimism is based on the arrival of these new legislators, whom he describes as “the cavalry that is arriving in Washington,” which could favor its initiative to transform part of the gold reserves to create the strategic reserve in bitcoin.
In addition to the proposals at the federal level, the rise of the bitcoin reserve has reached two US states, Florida and Pennsylvania, which have shown interest in establishing this type of reserves, as reported by CriptoNoticias. These states are exploring the possibility of diversifying their financial reserves by including BTC, following the example of what is discussed at the national level.
