Senator Cynthia Lummis has offered a bold plan for the U.S. government to strengthen its financial position by converting a portion of its gold stockpiles into Bitcoin.
In a live interview on CNBC, Lummis outlined her vision for a strategic Bitcoin reserve to reduce national debt and fortify the U.S. dollar’s status as the world’s reserve currency.
Lummis suggested that the U.S. acquire and hold Bitcoin for the long term—at least 20 years. She pointed out that Bitcoin’s significant appreciation since its inception could help strengthen the dollar and reduce the national debt.
“Americans are still grappling with inflation and high prices. They want to see the national debt reduced,” Lummis said. “Bitcoin is an asset that is immutable and easily stored in federal vaults, making it an ideal tool for this purpose.”
When asked about the cost of implementing such a plan, particularly at a time when the government is looking to cut spending, Lummis emphasized that no new taxpayer dollars would be required. “We wouldn’t need to spend any new dollars,” she said.
Government Can Sell Gold to Buy Bitcoin
Lummis explained that the U.S. government could avoid spending new taxpayer money by selling off its gold reserves, specifically the gold certificates currently held by Federal Reserve Banks. She noted that these certificates are valued at prices from the 1970s and could be sold at their current market value to fund Bitcoin purchases.
“We have gold reserves at our 12 Federal Reserve Banks, including gold certificates. We could sell them and convert the proceeds into Bitcoin,” the senator said.
In addition, Lummis pointed out that the U.S. government already holds over 200,000 Bitcoin through asset forfeiture funds. This further positions the nation to establish the reserve without any new expenditure.
When asked if she owns Bitcoin herself, Lummis disclosed that she holds five BTC, which are managed within a blind trust.
Interestingly, Lummis’ proposal to sell gold for Bitcoin acquisition has garnered support from prominent figures in the cryptocurrency industry, including Michael Saylor, the chairman of MicroStrategy. “Sell the past, buy the future,” Saylor remarked, emphasizing Bitcoin as a forward-looking asset.