- In an interview with CNBC, Michael Saylor claimed that acquiring one million bitcoins over the next five years could significantly reduce the US national debt of $16 trillion.
- Senator Cynthia Lummis also introduced a bill to increase national reserves of digital assets, which could be challenged in Congress due to bitcoin’s volatility.
As national debt and economic uncertainty rise, Michael Saylor, co-founder of MicroStrategy, is making the case for an initiative: the creation of a strategic bitcoin reserve for the United States. The plan suggests that Bitcoin could play a role in easing the country’s financial burdens, and hopes are high for significant legislative support.
The national debt reached $35.95 trillion on Friday, according to data from the US Treasury website. This figure highlights the frantic pace of public spending, which has caused concern among economists for several years.
In theinterview with CNBCthe staunch bitcoin advocate claimed that accumulating one million bitcoins over the next five years could reduce the current national debt by $16 trillion, a decrease of 45%. This bold assertion underscores Mr. Saylor’s confidence in bitcoin as a viable financial asset that can support the U.S. economy.
Building on this momentum, Mr. Saylor believes that a formal plan for the US government to hold its own bitcoin reserve could materialize soon. Earlier this year, at the Bitcoin 2024 conference in Nashville, Trump indicated he would support an initiative to hold 200,000 bitcoins in reserve.
Michael Saylor also detailed what he calls the “Trump Max” scenario, in which the United States would acquire four million bitcoins. This strategy, according to Saylor, could bring in $81 trillion, touting it as the most “rational” approach in light of the nation’s financial challenges.
He also revealed that MicroStrategy plans to raise $42 billion to acquire more bitcoin over the next four years. The move reinforces the company’s plan to dominate as a “bitcoin cash company.” The company currently owns 252,220 BTC, worth $6.851 billion, which it acquired at an average price of $39,266 per bitcoin.
Senator Lummis also calls for the creation of a bitcoin reserve
The senator from Wyoming Cynthia Lummis also proposed a plan. It aims to create a US bitcoin reserve by selling some of the Federal Reserve’s gold, with the aim of converting it into one million bitcoins at a cost of $90 billion. Although it aligns with former President Trump’s pro-crypto stance, the proposal is likely to face significant challenges in Congress. This is due to concerns about Bitcoin’s volatility and the high level of trust required from lawmakers.
Lummis’ proposal is not the only effort to create a government-backed bitcoin reserve. In Pennsylvania, Republican Representative Mike Cabell has just introduced a bill that would allow the Treasury to allocate up to 10% of its funds for investment in Bitcoin.
BTC is currently trading at $88,296, having suffered a 2.09% decline over the past 24 hours, while it rose 17.09% over the past week.
