U.S. Senator Lummis Suggests Buying 1 Million Bitcoin to Reduce National Debt
The US Senator from Wyoming, Cynthia Lummis, has a bold idea to help reduce the national debt: buy 1 million Bitcoin. The senator from Wyoming, who strongly supports cryptocurrency, believes this move could help improve the country’s financial situation.
Senator Lummis talked about the Bitcoin adoption plan during a Senate Finance Committee meeting. She thinks buying Bitcoin could be a smart financial decision for the country. “With the U.S. debt growing, we need new ways to manage our money,” Lummis said. “Bitcoin is becoming more popular and could help us stabilise and even reduce our national debt.”
Why Buy Bitcoin?
Lummis believes Bitcoin’s value will keep increasing over time. By buying 1 million Bitcoin, the U.S. government would have a valuable asset that might grow in value. This growth could help pay off some of the national debt.
Lummis explained that Bitcoin supply is limited in supply and in high demand tends to increase in value. She added that “Bitcoin is not controlled by any single country and does not suffer from inflation like regular money, making it a good option to protect against economic problems.“
Reactions to the Proposal
Economists and policymakers have different opinions about this idea. Supporters think that if the U.S. adopts Bitcoin as a reserve asset, it could boost Bitcoin’s legitimacy and attract more investors, which could increase its value and benefit the U.S. economy.
However, critics worry about Bitcoin’s price swings and the risks of investing a large amount of money in it. “The idea is creative, but Bitcoin’s volatility is a big risk,” said Dr. Emily Carter, a well-known economist. “A sudden drop in Bitcoin’s value could hurt the national economy.”
Bigger Impact on U.S. Financial Policy
Lummis’s idea fits into a larger trend of thinking about how digital assets can be part of national financial strategies. This comes after recent talks about using blockchain technology and increasing interest in Central Bank Digital Currencies (CBDCs).
Lummis asserted that America needs to lead in financial innovation. “As we deal with today’s financial challenges, using digital assets like Bitcoin is important. It positions us as leaders in finance and gives us a new way to handle our debt.”
What’s Next?
The proposal will be discussed and debated in the coming weeks and needs to pass several legislative steps before any action is taken. Senator Lummis has also called for a detailed study on the proposal’s potential impacts, urging her colleagues to consider both the long-term benefits and risks.
“We are at an important point,” Lummis concluded. “The choices we make now will shape our economy’s future. We need to think beyond traditional solutions and embrace the possibilities of digital assets.”
As the debate continues, people around the world will be watching to see if the U.S. takes this historic step towards including Bitcoin in its national financial strategy.
Read also: Trump Says He Will Make Bitcoin a Key U.S. Asset if Elected: Bitcoin 2024 Conference
