Cynthia Lummis’ Bitcoin Reserve Plan Won’t Solve US Debt Crisis, Think Tank President Says

Avik Roy, president of the Foundation for Research on Equal Opportunity, said on stage at the North American Blockchain Summit 2024 in Dallas

United States Senator Cynthia Lummis' plan to set up a Bitcoin strategic reserve will not be enough to solve the country's debt crisis, which has now reached $35 trillion, according to the president of a nonprofit think tank.

“When Senator Cynthia Lummis of Wyoming talks about how a Bitcoin reserve could help us eliminate the federal debt, that's an overselling of what Bitcoin could do,” Avik Roy, president of the Foundation for Research on Equal Opportunity, said on stage at the North American Blockchain Summit 2024 in Dallas, Texas on Nov. 20.

A scenario where the US buys an “enormous” amount of Bitcoin ( BTC ) BTC $94,372 that appreciates could help, Roy said, but it won't catch the $35.46 trillion debt that has been rising nearly exponentially since the 1980s.

Avik Roy (left) speaking at the NAB Summit 2024 on Nov. 20. Source: Cointelegraph

But it could ease tension in the bond market, Roy explained.

Roy is, however, concerned that such a setup could see the US erode those Bitcoin reserves, similar to how it did with gold in the 1970s.

Related: ‘Tone deaf’ — US moves $2B Silk Road BTC after Trump’s stockpile pledge

Since 1981, US national debt has increased at a compounded annual growth rate of 5.3% from $3.81 trillion to $35.46 trillion, according to US Treasury Fiscal Data.

Change in US national debt over the last 100 years. Source: US Treasury Fiscal Data

Lummis introduced the Bitcoin Act in July for the US government to buy 1 million BTC — roughly 5% of the total supply — and hold it for at least 20 years.

The Wyoming Senator also called on the US Treasury to convert some of its 8,000 tons of gold holdings — valued at around $448 billion — into the proposed Bitcoin strategic reserve.

President-Elect Donald Trump, who will be inaugurated on Jan. 20, also promised to create a national Bitcoin stockpile back in July.

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Additional reporting by Turner Wright.

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