Republican Senator proposed to buy more Bitcoin by selling The Fed’s gold

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As a seasoned financial analyst with over two decades of experience in the industry, I find Senator Cynthia Lummis’ proposition to establish a Bitcoin national strategic reserve intriguing, albeit somewhat unconventional. The idea of tapping into The Federal Reserve’s gold reserves for this purpose is novel and could potentially revolutionize the way governments approach digital assets.

Sen. Cynthia Lummis suggested establishing a strategic national Bitcoin reserve through the sale of some federal gold reserves, instead of using funds directly from the government’s budget.

Senator Cynthia Lummis, a Republican, intends to help bring President-elect Donald Trump’s vision for Bitcoin into fruition. In an interview with Bloomberg, she proposed that some of The Federal Reserve’s gold reserves could be utilized to acquire more Bitcoin, instead of obtaining it from the federal budget.

Lummis stated that we currently possess gold-backed certificates which can be exchanged for Bitcoin.

According to her proposal, a significant cryptocurrency (currently holding the highest market capitalization) will be retained for at least twenty years. This prolonged ownership aims to generate substantial growth in value, which could potentially lessen our nation’s massive debt – currently estimated to be around $36 trillion.

On the other hand, the Trump administration intends to retain approximately 200,000 Bitcoins in its possession. Notably, most of the cryptocurrency held by the U.S. government was seized as assets from various legal proceedings.

In Polymarket, the globe’s leading prediction market, there seems to be a low level of trust within the cryptocurrency community regarding Trump’s strategy, as per the poll results indicating a mere 30% probability.

Despite this, it’s become apparent that a significant number of lawmakers supportive of cryptocurrency have been elected to the U.S. Congress. This suggests that such a crypto bill might find easy approval in the future.

Trump pledges to Bitcoin community

In a recent conference in Nashville, President-elect Donald Trump has previously promised the cryptocurrency community that he intends to establish a strategic reserve for Bitcoin upon his inauguration in mid-January. Furthermore, he hinted at aspiring to make the United States the global leader in crypto technology.

Trump additionally expressed his intention to dismiss Gary Gensler, the current SEC Chair, on his inauguration day. In his place, he plans to appoint someone who holds a favorable view of digital assets as the new chairman.

Additionally, he pledges to the cryptocurrency community that he will work towards granting clemency to Ross Ulbricht, the Silk Road founder, who is currently serving a 40-year sentence with no chance for parole.

Over the past seven days, the price has skyrocketed by nearly 12%, peaking at $89.632 on November 18. Additionally, this leading cryptocurrency hit new record highs of up to $93.477 as early as November 13. The impressive growth has also boosted the market capitalization to an astounding $1.7 trillion.

After Donald Trump’s win in the U.S. election on November 8, there was increased optimism within the cryptocurrency market regarding potential positive regulation and widespread adoption. This optimism contributed to the market’s growth.

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2024-11-18 02:30