Donald Trump and Cynthia Lummis Want the US to Create a Bitcoin Strategic Reserve

Fourteen years ago, bitcoin was an experimental obscurity mainly popular among cypherpunks and libertarians, trading for less than a U.S. dollar.

Fourteen years ago, the price of bitcoin was less than 1 U.S. dollar. Now, the cryptocurrency trades for over $54,000. Former President Donald Trump and Sen. Cynthia Lummis (R–Wyo.) have both proposed that the U.S. government create a bitcoin strategic reserve.

Trump suggested the idea at the Bitcoin Conference in Nashville in July. He said that the government has broken the "cardinal rule" that every bitcoiner knows: never sell your bitcoin. He vowed that if he's president again, the U.S. will "keep 100 percent of the bitcoin [it] currently holds or acquires into the future."

Currently, the government sells confiscated bitcoin at a lower price than it was bought for through the U.S. Marshals service. According to the Justice Department, the government has confiscated about 200,000 bitcoin from accused criminals who, in some cases, stole the bitcoin.

The government also possesses a petroleum reserve, founded in 1975. The federal government also stockpiles medical supplies, foreign currencies, materials of military manufacturing importance, grains, and gold.

However, some bitcoin community members are concerned about the government co-opting bitcoin for its own economic goals. Lummis sells the idea as a way to reduce future debt, which depends on bitcoin continuing to rise in value—something that is not guaranteed. Her bill would require the government to hold the bitcoin it buys for 20 years except for sales to reduce national debt.