Senator Cynthia Lummis Proposes Bitcoin Solution As US Debt Hits $35 Trillion

At the Bitcoin 2024 conference, Sen. Lummis proposed setting up a strategic Bitcoin reserve as the national debt climbs to $35 trillion. The US government is planning to purchase one million units of Bitcoin, equivalent to five per cent of its total supply, to save it from collapse. However, recent events show this move was contradicted with nearly $2 billion worth of BTC being moved out of the custody.

A groundbreaking proposal has been presented by Senator Cynthia Lummis of Wyoming when the national debt of the United States hit a historical mark of $35 trillion.

She introduced a bill that she presented during a conference called Bitcoin 2024 in Washington D.C. regarding mounting national debt through the use of Bitcoin. The recommended law suggests that policymakers create and maintain strategic reserves of Bitcoins to back up the US currency, strengthening it against other global currencies.

Senator Cynthia Lummis’s Bitcoin Solution

The national debt in the United States has reached an all-time high of 35 trillion dollars. A new idea on how to make strategic Bitcoin reserves was revealed just days ago by Coingape, but it originated from Senator Cynthia Lummis.

As per the specified reformist bill introduced at the conference Bitcoin 2024, the goal is to keep dollar dominance in the global market of currencies and bolster the solidity of the American economy by including this cryptocurrency as an admitted capital investment.

At the same time, according to American Senator Cynthia Lummis, there are some initiatives to organize the formation of decentralized centres for the storage of bitcoins – bitcoin depositories, controlled by the Ministry of the Treasury of the United States. The first stage provides for the purchase of one million bitcoins, or 5% of the existing number of bitcoins available worldwide, and transfers these to state reserves taken from the Federal Reserve System and Treasury Department reserves.

From the speech by Senator Cynthia Lummis, it is evident that one has to work with all defence mechanisms to help contain the ever-rising inflation rates and cost of living in various regions of the country.

The Rising US National Debt: Challenges and Strategic Responses

Will the US ever be able to get its debt under control? Currently stands at $35 trillion. The US national debt is now at an extremely high of $35T, indicating serious fiscal problems in the US. This according to the treasury, is due to the federal costs program, expanding at a faster-than-anticipated pace.

High interest rates have been an element that has been problematic chronically to the management of debts and the overall economic competency in the country.

Later on, the Treasury borrowed $234 billion between April and June, significantly less than the anticipated rate. Still, it expects to borrow $740 billion between July and September. It is estimated that the annual interest costs may climb to one $ if projections are to be believed. 7 trillion by 2034.

This financial burden makes it imperative to look for more earning sources, for instance, the idea that one of the senators, Cynthia Lummis, proposed to invest in Bitcoins as an extra reserve to support the economy.

Read more:- Robinhood Records 161% Crypto Revenue Growth In Q2

Donald Trump and Robert F. Kennedy Backing Bitcoin

At the Bitcoin 2024 Conference, Donald Trump and Robert F. Kennedy Jr. endorsed Bitcoin. Trump suggested using U. S. held bitcoins to establish a national currency.

Bitcoin might become an asset owned by the nation to be beneficial for every resident as pointed out by Trump and corresponds to the bill of Senator Cynthia Lummis.

Kennedy promised to integrate economic components if elected, aligning with Trump in supporting Bitcoin to tackle economic issues with bipartisan recognition.

Analysts Back Senator Cynthia Lummis

Many financial analysts and famous market coaches had earlier suggested Bitcoin as the solution supporting Senator Cynthia Lummi. Market analyst Peter Brandt predicted the US dollar’s bearish trend due to concerns about paper currency. He and other experts suggest Bitcoin as a reliable store of value amid the dollar’s depreciation.

Both Elon Musk and Robert Kiyosaki have also advocated for Bitcoin as an investment against the current world economy. VanEck’s CEO, Jan van Eck, highlighted Bitcoin’s strengths, drawing a comparison to gold to counter Senator Cynthia Lummis’ views on digital currency.

On the other hand, people are bestowing attention on how the U.S government is managing the bitcoins it owns. This action is quite contrastive to what Trump in the past has stated regarding the U.S. will never sell its Bitcoin.