Senator Cynthia Lummis Calls Bitcoin “Digital Gold,” Proposes Selling Part of US Gold Reserves to Buy 1 Million BTC

Lummis is a big supporter of cryptocurrency and thinks it's time for the U.S. to get on board in a big way.

Senator Cynthia Lummis (R-WY) has proposed a bold new plan to sell a portion of the country's gold reserves and use the proceeds to purchase 1 million Bitcoins, a move that would dramatically bolster the nation's cryptocurrency holdings.

Lummis, a longtime advocate for crypto adoption, unveiled her proposal on Monday, arguing that it is time for the U.S. to join the digital asset revolution in a meaningful way. The proposal is part of a broader effort by Lummis and other crypto-friendly lawmakers to integrate crypto into the mainstream financial system.

In a statement, Lummis highlighted the growing importance of Bitcoin as a safe haven asset, comparable to gold but with unique advantages. She emphasized the need to diversify the nation's investments to strengthen its long-term economic resilience.

"Having Bitcoin in reserve can help the US dollar remain strong,” Lummis tweeted on Monday, sharing a link to a story about her proposal on Cointelegraph.

Lummis' proposal is significant as it would place a large amount of government funds into a cryptocurrency, a move that could spur further crypto adoption and propel the U.S. into a leadership position within the global digital asset landscape.

The proposal has already garnered attention from the crypto community, with many expressing support for the initiative. However, it is likely to face opposition from some lawmakers and financial regulators.

Bitcoin, being a relatively new and volatile asset compared to gold, might raise concerns among some officials. Nonetheless, Lummis appears optimistic about her plan's prospects.

According to Bloomberg, the U.S. currently holds about 261.5 million troy ounces of gold in its reserves at the U.S. Bullion Depository at Fort Knox, Kentucky. At Friday's closing price, that gold is worth around $484 billion.

The country's Bitcoin holdings, on the other hand, are minimal. The Secret Service, which is responsible for protecting the nation's financial system, reportedly has some crypto holdings, but the exact amount and types of cryptocurrencies are not publicly disclosed.

If Lummis' proposal is accepted and the government sells, say, a quarter of its gold holdings, that would fetch about $121 billion at current prices. That would be enough to buy around 1 million Bitcoins at Friday's closing price of $121,175.

However, it's important to note that the proposal is still in its early stages and will need to be approved by Congress before it can proceed.