U.S. Senator Cynthia Lummis has unveiled an ambitious proposal to incorporate Bitcoin into the federal government’s financial strategy.
She suggests that a Strategic Bitcoin Reserve could reduce the national debt by 50% over a 20-year period.
The proposal, rooted in long-term investment planning, advocates for the federal government to purchase or convert existing liquid assets into Bitcoin and hold them for two decades.
Senator Lummis cited credible financial models projecting significant growth in Bitcoin’s value over time, arguing that if these projections hold true, the resulting gains could be used to offset the ballooning U.S. debt.
Her announcement signals a dramatic shift in how digital assets might be utilized at the national level for fiscal reform.
Bitcoin as a Modern-Day Gold Reserve: A Hedge Against Inflation
Senator Lummis, known for her pro-crypto stance, emphasized Bitcoin’s potential as a hedge against inflation and fiat currency depreciation.
In an era marked by soaring inflation, interest rate hikes, and rising debt levels, she argued that Bitcoin could serve as a modern counterpart to traditional gold reserves.
As more institutional investors adopt Bitcoin for its limited supply and long-term appreciation, Lummis’s plan proposes scaling this concept to the federal level.
She suggested that just as gold once served as a foundation for national wealth protection, Bitcoin could now help stabilize and strengthen the U.S. balance sheet over time.
Also Read: U.S. Treasury and Commerce Department to Buy Bitcoin for Strategic Reserves, White House Confirm
Backed by Economic Models: Bitcoin’s 20-Year Growth Outlook
While critics may view the plan as speculative, Lummis underscored that the proposal is grounded in rigorous economic modeling.
These models factor in historical price trajectories, supply limitations, and growing institutional adoption of Bitcoin.
Although specific projections were not made public, the models suggest that long-term Bitcoin appreciation could translate into massive unrealized capital gains, which may ultimately be applied toward reducing national debt obligations.
The modeling reflects a growing confidence among policymakers and economists in digital assets as strategic financial tools, rather than purely speculative instruments.
A Radical Policy Shift Gaining Momentum in Washington
Lummis’s proposal represents a bold departure from conventional fiscal policy but reflects a growing acceptance of digital assets in government policy circles.
Once considered fringe, such views are becoming more mainstream, especially as countries like El Salvador integrate Bitcoin into national reserves.
Lummis, as chair of the Senate Banking Digital Assets Subcommittee, continues to lead the push for crypto-inclusive policy reform.
Her advocacy also aligns with a broader pro-crypto political movement, including the upcoming administration of President-elect Donald Trump, which has signaled strong support for blockchain innovation and digital finance transformation.
Bitcoin Price Climbs Amid Legislative Momentum and Political Support
In the wake of Lummis’s proposal, Bitcoin (BTC) has experienced an upward trend, trading at $87,517.55 with a 24-hour trading volume nearing $24 billion.
The coin has gained 3.26% in the last 24 hours and 3.49% over the past week, pushing its market cap past $1.73 trillion.
Meanwhile, Lummis continues to generate buzz, having recently joined the viral “laser eyes” movement in support of the Bitcoin Strategic Reserve Act.
Her broader plan includes urging the Federal Reserve to sell a portion of its gold reserves in favor of Bitcoin, reinforcing her long-term vision of a dual-reserve system that pairs Bitcoin with the U.S. dollar.