Senator Cynthia Lummis has introduced the “BITCOIN Act of 2024,” which proposes the creation of a federal Bitcoin reserve amounting to 1 million BTC over five years, with an annual addition of 200,000 BTC.
According to the draft of the bill, the cryptocurrency can only be sold after 20 years, with the sole purpose of repaying national debt. After this period, the Federal Reserve (Fed) will be allowed to liquidate up to 10% of the reserve every two years for any needs.
The assets are to be placed in a decentralized network of storage facilities across the country. The selection of custodians will be based on geographic diversity, security, and accessibility.
The document also states that the purchase of Bitcoins will be funded by the Department of the Treasury. The primary goal of the reserves is to ensure long-term financial stability for the country and reduce dependence on traditional currencies.
It is expected that this bill will spark lively discussions in Congress and among financial experts, given its innovative approach to using cryptocurrencies in the national economy.
