TechFlow news: Republican Senator Cynthia Lummis has proposed legislation to establish a one-million Bitcoin government reserve within five years.
Monetary expert George Selgin explained that the actual plan primarily involves the U.S. Treasury purchasing approximately $64 billion worth of Bitcoin, rather than directly using the Federal Reserve's "excess reserves." Part of the funding would be raised by revaluing the Treasury's gold holdings, which is expected to generate $353 billion. Selgin considers the proposal feasible but expresses concerns about its potential impact on commercial bank stability and questions the necessity of holding a large Bitcoin reserve. He suggests instead selling gold to pay down debt or fund other public-benefiting projects.
