Strategic Bitcoin Reserve: A Bold Move Backed by Military Support
Editorial Process ensures content is rigorously vetted by top industry experts, maintaining the highest standards of accuracy and impartiality.
Senator Lummis Advocates for a Strategic Bitcoin Reserve
United States Senator Cynthia Lummis (R-Wyo.) has revealed that parts of the nation’s military leadership are now ardent supporters of creating a Strategic Bitcoin Reserve (SBR). This marks a significant turning point, as it is the first instance of a sitting lawmaker indicating substantial military endorsement for such an initiative.
Advertisement Banner
Military Leaders Endorse Bitcoin Stockpiles
According to Lummis, several generals, particularly those stationed in Southeast Asia, see the strategic value in establishing Bitcoin reserves. “We are engaged in an economic contest with China,” she commented in an interview with Bloomberg Television. “The current US military leadership supports the concept of a Strategic Bitcoin Reserve.”
Ambitious Plans for Bitcoin Acquisition
Lummis has laid out a comprehensive plan to accumulate one million BTC, roughly equivalent to 5% of the total supply, over the next two decades. She believes this move could significantly reduce national debt, stating, “My goal is to mitigate half of the US debt.” The initial funding for this reserve would harness Bitcoin already under federal control: “We can begin by utilizing digital assets seized and held by the US Marshals Service.”
Recent Developments and Legislative Efforts
This announcement follows President Donald Trump’s issuance of Executive Order 14233, which establishes an SBR funded by BTC forfeited in federal cases. The order also mandates that these holdings be transferred to cold wallets managed by the Treasury. Currently, the House and Senate are deliberating the “BITCOIN Act,” which seeks to officially incorporate the reserve into law and authorize additional Bitcoin purchases without burdening taxpayers. However, Lummis acknowledged that direct legislative action to expand or finance the reserve might not occur this session, citing other priorities like market structure.
Gold and Bitcoin: A Balanced Approach
Addressing concerns about Bitcoin potentially overshadowing gold, Lummis clarified that she has no intentions of liquidating any gold reserves. Instead, she proposes re-evaluating the Treasury’s gold certificates from 1934 to reflect current market values, subsequently using this revaluation to increase Bitcoin holdings.
Contrasting Opinions on Strategic Resource Allocation
In response to JPMorgan Chase CEO Jamie Dimon’s suggestion that the US should stockpile “bullets, drones, and rare earths” instead of Bitcoin, Lummis retorted: “Even the US military disagrees with him. While we must prepare for traditional warfare, a dual approach is essential.”
A Bitcoin-Only Reserve
Lummis is firm on making the reserve exclusively Bitcoin-based, emphasizing its proof-of-work foundation. She showed no interest in diversifying into proof-of-stake assets or stablecoins at the sovereign level.
As of the latest updates, Bitcoin is trading at $105,494. The cryptocurrency continues to hold steady, according to market analysis.
Ensuring Editorial Integrity at our publication involves meticulous research and review by leading technology experts and experienced editors. This rigorous process is key to maintaining the reliability and relevance of our content for readers worldwide.
“`
