News
The United States is betting big on Bitcoin!
Mar 30 Jul 2024 ▪ 3 min read ▪ by Luc Jose A.
The United States could soon take a major step toward integrating bitcoin into its economic strategy. This development, which could redefine the role of digital currencies in global financial strategy, raises as many hopes as questions.
Bitcoin, a strategic reserve for the United States
At Bitcoin 2024 At a conference in Nashville, pro-crypto Senator Cynthia Lummis introduced a bill to include bitcoin in the United States’ reserve assets. The plan provides to acquire 5% of the total supply of bitcoins, which will be held as a Treasury asset. The senator compared the move to the Louisiana Purchase in 1803, highlighting its potential impact on the country’s economy and monetary policy. She also said it would secure a significant portion of the crypto.
The US government already holds over 183,000 BTC. This reserve, estimated at around $12 billion, positions the United States as the largest geopolitical holder of this decentralized currency. In addition to Bitcoin, the US 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 the Future of Bitcoin
Lummis’ proposal has received support from several political figures. Former President Donald Trump said at the Bitcoin 2024 conference in Nashville that he would not sell the United States’ bitcoin reserves and that he wanted to see the industry thrive. Meanwhile, independent candidate Robert F. Kennedy Jr. has proposed a bolder strategy. He promises to transfer bitcoin reserves to the Treasury and buy 500 BTC per day until he accumulates 4 million BTC.
This vision of Bitcoin as a strategic asset is not universally accepted, however. Ari Paul, chief investment officer at BlockTower Capital, has expressed doubts about the feasibility of such an initiative. He estimates the chances of seeing it come to fruition by 2028 at 10. Paul emphasizes that the candidates’ unofficial statements are not enough to establish a real strategic reserve policy.
The implications of Lummis’ proposal remain uncertain. For now, The Future of Bitcoin As a strategic reserve asset, the single currency continues to divide experts and policy makers.
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Luc José A.
A graduate of 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 am committed to raising awareness and informing the general public about this constantly 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 current events, decipher market trends, relay the latest technological innovations and put into perspective the economic and societal challenges of this ongoing revolution.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be considered investment advice. Do your own research before making any investment decision.