Now that Trump supporters have secured control of the White House for the next four years (and likely control of Congress and the Senate as well), some of those more “ambitious” ideas may now actually be implemented.

One such idea is the creation of a Bitcoin strategic reserve — but even with a landslide victory for Trump, is that likely? Well, according to Bitcoin-friendly Senator and Capitol Hill “crypto queen” Cynthia Lummis, the answer is a resounding “yes!”

Despite Lummis’ optimism, there are still significant obstacles to creating a Bitcoin reserve, the most notable of which are lingering skepticism about the cryptocurrency’s long-term viability and limited public interest in Bitcoin.

Lummis: Bitcoin Reserve Will Help Hedge Inflation, Tackle Debt

Senator Lummis first introduced legislation to create a Bitcoin Strategic Reserve, known as the Bitcoin Act of 2024 (the Stimulating Innovation, Technology, and Competitiveness through Streamlined National Investment Act), in July of this year. The bill proposes that the U.S. Treasury purchase one million Bitcoins, just under 5% of the total supply, over five years.

Lummis argues that creating a Bitcoin Strategic Reserve would protect against the depreciation of the U.S. dollar and, over time, help the country pay off its $35 trillion in debt. She believes the reserve could help the U.S. pay off half of its debt by 2045. The Treasury Department would be responsible for managing the reserve.

What's the Future of a Bitcoin Strategic Reserve?

In short, they are real, but it may be difficult for the Trump administration to create a significant reserve of Bitcoin, even with a Republican Congress and Senate, given that:

A large permanent reserve would require legislation to pass both houses, and despite being under GOP control, there would still be significant opposition from many individual Republican senators and congressmen who believe Bitcoin is too volatile and risky for the US government to invest in.

Limited support for Bitcoin among the US electorate, as most people are still unfamiliar with the technology and skeptical of its value, making it difficult to make a political case.

Trump may be able to avoid regulatory hurdles by creating a permanent reserve via executive order, but it may not be large enough to have the “strategic” impact that most supporters hope for.

It’s worth noting that if this strategic reserve is the answer to America’s massive national debt, it would have to be huge — likely well over 1 million BTC. If the reserve is created and they purchase the 1 million BTC proposed by Lummis, the price of BTC would have to rise to $17 million (about 250 times its current level) to be able to pay off half of America's current debt.

💸💲🧠 Get up to 5020 USDT as a welcome bonus and an additional 1025 USDT by using this referral on  Bybit