Wyoming Senator Cynthia Lummis is urging the U.S. Treasury to transform part of its 8,000 tons of gold reserves into Bitcoin, proposing the creation of a national Bitcoin strategic reserve. Lummis believes this move could safeguard the economy against inflation and rising national debt while positioning the U.S. as a global leader in cryptocurrency adoption.

In a recent interview with Bloomberg, Lummis suggested that converting gold certificates to Bitcoin would have a neutral impact on the government’s balance sheet. This alternative eliminates the need to spend $90 billion upfront to purchase Bitcoin at current market prices.

Lummis, a vocal Bitcoin advocate, introduced the Strategic Bitcoin Reserve bill to the Senate, emphasizing its importance amid skyrocketing inflation and record-breaking national debt. The initiative proposes acquiring 5% of Bitcoin's total supply—approximately 1 million BTC—to hold for 20 years.

Prominent investor Anthony Pompliano supports this idea, stating that the cost of establishing a Bitcoin reserve is negligible compared to recent government spending. Highlighting a $850 billion debt increase in just three months, Pompliano argued that allocating $50–100 billion for Bitcoin could provide significant long-term value.

However, not everyone agrees with the feasibility of such a reserve. Galaxy Digital CEO Mike Novogratz expressed skepticism, particularly under a Trump administration. Despite doubts, Novogratz noted that if such a reserve were created, Bitcoin's price could skyrocket to $500,000 per coin.

As nations increasingly explore Bitcoin as a strategic asset, Lummis' proposal sparks debate over whether the U.S. should embrace the cryptocurrency revolution or risk falling behind in the global race for digital currency dominance.