The Bitcoin Layer
The BITCOIN Act of 2024 with Senator Cynthia Lummis
- Senator Cynthia Lummis introduced the Bitcoin Act of 2024 (officially the Boosting Innovation, Technology and Competitiveness Through Optimized Investment Nationwide Act), proposing a Strategic Bitcoin Reserve to address the US national debt crisis.
- The US national debt has exceeded $35 trillion with a debt-to-GDP ratio of 125%, approaching the danger threshold of 130% where financial red flags emerge.
- The bill proposes acquiring approximately 1 million Bitcoin (roughly 5% of total supply) over five years and holding it in cold storage for a minimum of 20 years, potentially cutting national debt in half through Bitcoin's projected growth.
- A decentralized network of five geographically distributed cold storage facilities using multi-signature technology would secure private keys, ensuring no single point of failure compromises holdings.
- A quarterly proof-of-reserves system using public cryptographic attestation would provide transparency and third-party audits while protecting security of the reserve.
- Funding comes from existing US holdings including gold certificates (converted from outdated 1970s book values) and Fed bank remittances—not new taxes.