US Military May Back Bitcoin Reserve to Counter China
Senator Cynthia Lummis revealed that elements within the US military, particularly generals in Southeast Asia, support establishing a Strategic Bitcoin Reserve (SBR) as a countermeasure against China’s economic influence. This initiative, first proposed by Lummis, involves accumulating 1 million BTC, approximately 5% of the total supply, over twenty years. The senator’s plan involves leveraging existing federal assets, specifically Bitcoin seized by the US Marshals Service, to kickstart the reserve. Legislation, the “BITCOIN Act,” is under consideration in Congress, aiming to codify the reserve and potentially allow for additional purchases without increasing taxpayer burden. However, Lummis acknowledges that the bill’s passage is unlikely in the near future due to other legislative priorities. Lummis emphasized that this Bitcoin reserve would not displace existing gold reserves; instead, the plan involves revaluing the Treasury’s gold certificates at current market prices and using that increase in value to purchase Bitcoin. The senator’s proposal is explicitly for a Bitcoin-only reserve, rejecting diversification into proof-of-stake assets or stablecoins, citing Bitcoin’s proof-of-work mechanism as a key feature. This proposal directly counters opinions such as JPMorgan Chase CEO Jamie Dimon’s suggestion that the US focus on “bullets, drones, and rare earths” instead of Bitcoin. Lummis argues that both are necessary for national security in an evolving geopolitical landscape. The current price of Bitcoin stands at $105,494 at the time of reporting. This proposal signifies a significant shift in the conversation around Bitcoin’s role in national security and economic strategy, suggesting a potential future where cryptocurrency plays a more prominent role in government reserves.
(Source: https://bitcoinist.com/us-military-bitcoin-reserve-counter-china/)
