Senator Lummis Proposes $200B Bitcoin Purchase to Cut National Debt by $354B

Senator Cynthia Lummis has introduced a novel approach to tackle the national debt by utilizing Bitcoin. The plan entails the government purchasing Bitcoin with gold certificates, thereby establishing a gold-backed Bitcoin reserve. This method is designed to substantially decrease the national debt over two decades without adding to the financial burden on taxpayers.

The proposal outlines that the government could acquire $200 billion worth of Bitcoin, which is projected to save approximately $354 billion in interest payments through innovative bond issuance. This plan, proposed by Andrew Hohns, underscores the potential financial advantages of incorporating Bitcoin into the national reserve strategy. By holding Bitcoin as a reserve, the government could diminish its dependence on conventional debt instruments, thus lowering interest payments and easing the financial pressure on taxpayers.

This strategy is in line with broader initiatives to create a strategic Bitcoin reserve. Trump has previously shown interest in establishing such a reserve to combat the national debt. This proposal highlights the increasing acknowledgment of Bitcoin's potential as a financial tool, capable of addressing significant economic challenges. By leveraging Bitcoin, the government could achieve considerable savings and reduce the national debt without resorting to additional taxation or borrowing.