Federal Reserve announcements and financial reports

Senator Lummis Proposes Selling Fed Gold to Buy 1 Million Bitcoins, Offset $16 Trillion Debt

Nov 15, 2024, 02:57 PM

U.S. Senator Cynthia Lummis has introduced the 'Bitcoin Act of 2024' in Congress, proposing the sale of part of the Federal Reserve's gold reserves to create a U.S. strategic Bitcoin reserve. The bill outlines a plan to purchase up to 1 million Bitcoins over a five-year period, with an annual cap of 200,000 Bitcoins. The initiative aims to offset $16 trillion of U.S. government debt and reflects a broader vision of integrating Bitcoin as a strategic asset. Lummis, an ally of former President Donald Trump, argues that Bitcoin, as digital gold, is a more attractive and modern safe-haven asset compared to traditional gold. Michael Saylor supports the bill, highlighting its potential transparency and strategic significance, as it would account for approximately 5% of all Bitcoin in circulation.