Bitcoin Reserve Proposal Seeks to Tackle National Debt and Boost Dollar Value
The United States may adopt Bitcoin as a strategic national asset, with proponents suggesting it could bolster the dollar, tackle national debt, and unlock trillions in economic value. According to Michael Saylor, MicroStrategy’s chairman, a Bitcoin reserve could create $16 trillion to $81 trillion in wealth for the US Treasury.
Saylor proposes categorizing assets like Bitcoin as “digital commodities” and establishing clear rights and responsibilities for issuers, exchanges, and owners. The plan aims to empower millions of businesses, drive growth, and create trillions in value.
Senator Cynthia Lummis has also suggested a rough framework for a Bitcoin reserve, proposing the US Treasury purchase 200,000 Bitcoin annually for five years until the reserve reaches one million tokens. This proposal would be funded through profits on Federal Reserve bank deposits and gold holdings, with the reserve maintained for a minimum of 20 years.
Critics argue that inaction could leave the US trailing nations like China. Proponents believe the United States has an opportunity to catalyze a 21st-century capital markets renaissance, unleashing trillions of dollars in value creation.
The proposal comes as Bitcoin’s price is down 3% over the past 24 hours to $96,160. Ethereum is also down 6.3% to $3,325.
Source: https://www.dlnews.com/articles/markets/michael-saylor-pitches-81-trillion-usd-bitcoin-reserve-plan