The United States is Betting Big on Bitcoin!
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The United States may soon take a significant step towards integrating bitcoin into their economic strategy. This evolution, which could redefine the role of digital currencies in global financial strategy, raises as much hope as it does questions.
Bitcoin as a Strategic Reserve of the United States
At the Bitcoin 2024 conference in Nashville, pro-crypto Senator Cynthia Lummis presented a bill aimed at including bitcoin in the United States’ asset reserves. This plan provides for the acquisition of 5% of the total bitcoin supply, which will be held as a Treasury asset. The senator compared this initiative to the Louisiana Purchase in 1803, highlighting its potential impact on the country’s economy and monetary policy. She also stated that it would secure a significant portion of this crypto.
The U.S. government already holds more than 183,000 BTC. This reserve, estimated to be worth around $12 billion, positions the United States as the main geopolitical holder of this decentralized currency. In addition to Bitcoin, the U.S. Treasury also holds significant assets in other cryptocurrencies. These assets include 50,000 Ether, 121 million USDT, 40,000 BNB, and over 10 million USD Coin.
A Controversial Vision of Bitcoin’s Future
Cynthia Lummis’ proposal has received support from several political figures. Former President Donald Trump stated at the Bitcoin 2024 conference in Nashville that he would not sell the United States’ bitcoin reserves and that he wants to see the industry thrive. Meanwhile, independent candidate Robert F. Kennedy Jr. has proposed a bolder strategy. He promises to transfer the bitcoin reserves to the Treasury and buy 500 BTC per day until accumulating 4 million BTC.
However, this vision of Bitcoin as a strategic asset is not universally accepted. Ari Paul, Chief Investment Officer at BlockTower Capital, has expressed doubts about the feasibility of such an initiative. He estimates the chances of it materializing by 2028 at 10:1. Paul emphasizes that unofficial statements by candidates are not enough to establish a genuine strategic reserve policy.
The implications of Lummis’ proposal remain uncertain. For now, the future of bitcoin as a strategic reserve asset continues to divide experts and policymakers.
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Graduated from 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 committed to raising awareness and informing the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. Every day, I strive to provide an objective analysis of the news, decipher market trends, relay the latest technological innovations, and put the economic and societal issues of this ongoing revolution into perspective.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
