Senator Cynthia Loomis Introduces Bitcoin Act to Build National Reserves
Senator Cynthia Loomis from Wyoming has put forth the Enhancing Innovation, Technology, and Competitiveness Through Optimizing Investments Nationwide (Bitcoin) Act. This bill aims to establish Bitcoin reserves in the United States, following a strategy commonly used in commodities like oil and gold.
Bitcoin Price Drops Despite Loomis’ Proposal
Despite the introduction of the Bitcoin Act, the price of Bitcoin has seen a decline. As of the latest update, Bitcoin is trading at $64,462, down approximately 2.97% over the past 24 hours. Senator Loomis has highlighted the urgent need for such a proposal amidst economic pressures such as rising inflation and mounting national debt.
Senator Loomis envisions a plan to purchase 1 million Bitcoins, which is about 5% of the global supply. This strategic move mirrors the country’s approach to gold reserves. The funding for this ambitious plan will involve reallocating existing Federal Reserve and Treasury resources, ensuring individual Bitcoin holders’ self-custody rights.
“Bitcoin is not only changing America, it is changing the world, and being the first developed nation to use Bitcoin as a savings technology secures our position as a global leader in financial innovation,” said Rep. Loomis.
Mixed Reactions and Criticisms
While the Bitcoin Act has garnered support from some US senators, it has also faced criticism. Some skeptics argue that the $70 billion investment in Bitcoin is a minute fraction compared to the $34 trillion US debt and may not hold significant strategic value. Renowned author Paul Weiner has expressed doubts regarding the bill’s effectiveness, stating that Bitcoin is not strategically important in global markets.
Despite the diverse opinions and criticisms, the introduction of the Bitcoin Act marks a significant milestone in American legislation. It represents a bold step towards integrating digital assets into the nation’s financial strategy.
Future Implications and Debate
As the Bitcoin Act progresses through the legislative process, it is expected to spark widespread debate among policymakers and economists. This discourse will shed light on varying perspectives regarding Bitcoin’s role in government fiscal strategies and the broader financial landscape.
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