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- Strategic Bitcoin Reserve funding is set to begin soon, confirms Senator Lummis after months of delay.
- ProCap BTC’s Jeff Park suggests reallocating gold reserves to Bitcoin to combat national debt.
- The Bitcoin Act supports creating a U.S. Bitcoin reserve from forfeited assets, boosting crypto confidence.
Senator Cynthia Lummis has verified that the U.S. government is set to start debilitating financing on its Strategic Bitcoin Reserve (SBR). Lummis stated in an X post on October 7 that the financing process for the Strategic Bitcoin Reserve could begin at any time.
The announcement comes after months of indecision regarding the plan that she had presented last year. Lummis gave credit to President Trump for initiating the acquisition process push but did not specify further the timeline.
Park Urges Bitcoin Investment to Combat U.S. Debt
Confirmation was granted when Jeff Park, the chief investment officer at ProCap BTC, posted a video speaking of the possibilities of reallocating the untapped gold winnings of the U.S. government to Bitcoin. Park emphasized that the U.S. government had an excess of 1 trillion gold reserves, which they had not sold at an actual price.
He mentioned that the national debt is now at $37.88 trillion. Park had proposed that some of these unrealized gains could be diverted to Bitcoin. Which is a long-term reorientation that, he thinks, would be profitable in the end.
Suppose you own Bitcoin, and you think Bitcoin will increase at a rate of 12% a year; then you are guaranteed to earn 30x of your value in 30 years, Park said. Lummis shared similar thoughts with Park and noted that it was a valid argument to proceed with the SBR initiative. This was another major reason she commended the argument to support the Bitcoin Act. To create a Bitcoin reserve in the country.
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Strategic Bitcoin Reserve to Use Forfeited Assets
The Bitcoin Act, which President Trump signed more than seven months ago, would store the reserve with Bitcoin that was extracted via civil and criminal forfeiture. Lummis pointed out that the reserve would be financed without imposing extra expenses on taxpayers. The plan will progressively build the reserve on cost-efficient procedures.
The SBR would consist of a digital asset vault of other cryptocurrencies acquired by federal agencies as well. These assets can be ultimately changed to Bitcoin in the long run as part of the wider reserve approach. Advocates feel that such a move may encourage other nations to establish independent crypto reserves. Some countries are already experimenting with such initiatives.
The recent increase in the price of bitcoin to an all-time high of $126,080 has generated the hype around the SBR. Investors believe that, in the long run, the initiative to establish a government-sponsored Bitcoin reservoir in the United States could persist in the market. This action is expected to enhance global confidence in Bitcoin’s capacity to serve as a store of value.
Also Read: Crypto Funds Record Massive Inflows as Market Sentiment Strengthens
