Senator Cynthia Lummis Urges US to Take Action on Strategic Bitcoin Reserve Before Czech Republic
Key Points:
- Senator Cynthia Lummis calls for the US to make a decisive move on establishing a Bitcoin reserve.
- The Czech Republic is preparing to adopt its own strategic Bitcoin reserve.
- Arizona and Utah have already approved a Bitcoin reserve bill.
The debate over a US Strategic Bitcoin Reserve has resurfaced as the Czech Republic moves forward with plans to hold Bitcoin in its national reserves. In response, Senator Cynthia Lummis has urged the US to take swift action and implement a Bitcoin reserve strategy ahead of the Czech Republic.
Lummis Advocates for a US Bitcoin Reserve
In a recent post on X, Senator Lummis emphasized the urgency of the US embracing Bitcoin as a strategic asset. Citing the Czech Republic’s proposal, she warned that the US risks falling behind if it doesn’t act quickly. She stated:
“If you’re not first, you’re last. America must take decisive action to establish a Strategic Bitcoin Reserve and secure its place in the 21st century.”
With growing global interest in Bitcoin, Lummis’ proposal has influenced various countries, prompting them to consider their own Bitcoin reserves. While the Czech Republic has formally announced plans to integrate Bitcoin into its national reserves, the US has yet to take concrete steps toward implementing a similar strategy.
Czech Republic’s Bitcoin Plans and Lummis’ Response
Senator Lummis’ remarks followed the Czech Republic’s announcement that it plans to allocate billions of dollars in Bitcoin to its reserves. Governor Aleš Michl confirmed the nation’s intention to introduce a bill for Bitcoin acquisition. If approved, the Czech Republic would become the first country to officially hold a Bitcoin reserve.
Earlier in January, Michl hinted at Bitcoin’s potential role in diversifying the Czech National Bank’s (CNB) balance sheet. Now, CNB plans to allocate approximately $7.3 billion worth of Bitcoin—about 5% of its total reserves.
Trump’s Crypto Policies and the Future of a US Bitcoin Reserve
Although Donald Trump initially remained quiet on cryptocurrency following his January 20 inauguration, he later issued an executive order to develop a national digital asset stockpile. While the order primarily focused on cryptocurrencies, including stablecoins, there has been no direct mention of a strategic Bitcoin reserve.
However, Trump’s campaign rhetoric has demonstrated strong support for Bitcoin, leading many to speculate that the US may eventually move toward its adoption as a reserve asset.
Lummis’ Legislative Push for a Bitcoin Reserve
Earlier in 2024, Senator Lummis introduced the BITCOIN Act (“Boosting Innovation, Technology and Competitiveness through Optimized Investment Nationwide”) to position the US as a leader in financial innovation. She described Bitcoin as a transformative force and compared the potential adoption of a Bitcoin reserve to a historic opportunity, stating:
“Bitcoin is transforming not only our country but the world, and becoming the first developed nation to use Bitcoin as a savings technology secures our position as a global leader in financial innovation. This is our Louisiana Purchase moment that will help us reach the next financial frontier.”
Despite her efforts, the Bitcoin reserve bill remains unapproved. However, with growing pressure and international momentum, the US may soon have to make a decision on whether to follow the Czech Republic’s lead or risk falling behind in the global Bitcoin movement.
