30s Summary

Senator Cynthia Lummis from Wyoming is suggesting the US Treasury Department convert some of its gold stash into a Bitcoin strategic reserve. She said exchanging gold certificates for Bitcoin would not significantly impact the US finances. According to Lummis, the aim is to secure 1 million Bitcoins, approximately 5% of the total supply, and lock it up for two decades. Investor Anthony Pompliano backs this idea, while Galaxy Digital founder Mike Novogratz is sceptical about the proposal under the Trump administration, but predicts Bitcoin value could reach $500,000 each if it happens.

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Senator Cynthia Lummis from Wyoming has made a suggestion that might raise a few eyebrows. She’s telling the US Treasury Department to think about turning part of its stash of gold into Bitcoins. This is all about making a Bitcoin strategic reserve.

When she had a chat with the folks at Bloomberg, Lummis said if we took some of the gold certificates that the US Treasury is hanging onto and exchanged them for Bitcoin, it wouldn’t really affect Uncle Sam’s finances. That’s because it wouldn’t mean shelling out the almost $90 billion it would cost to buy that much Bitcoin right now.

This isn’t the first time Senator Lummis has mentioned the idea of the US Treasury getting more Bitcoin for this reserve. But she’s never specifically said what should be sold off to get more of the digital currency.

When the idea of a Strategic Bitcoin Reserve was talked about in the Senate, Lummis said it was crucial to get it done, given the soaring inflation rates and record-breaking national debt across the US.

In the plan Senator Lummis has come up with for this Bitcoin reserve, the aim is to get hold of 1 million Bitcoins – that’s around 5% of the total Bitcoin supply. And that lot would need to be locked up for two decades. The total bill for this would be around the $90 billion mark, based on what Bitcoin is worth right now.

According to investor and asset manager Anthony Pompliano, Bitcoin is currently the subject of a global race among governments across the world. He says the price tag involved is a drop in the ocean compared to government spending levels, and reckons it’s a risk worth taking.

Meanwhile, Mike Novogratz, CEO and founder of Galaxy Digital, thinks that it’s not very likely that a Bitcoin strategic reserve will be set up while Donald Trump’s in charge. But if it does happen, Novogratz has predicted that Bitcoin’s value could skyrocket to $500,000 for each one.