She believes the United States should hold Bitcoin in its strategic reserves. In her words, a Bitcoin reserve is not just about diversification. It’s about securing a geopolitical edge in an increasingly digital world.
This idea might seem futuristic, but it’s gaining traction as global financial systems shift. For investors and crypto newcomers alike, it raises an important question. Could Bitcoin become a tool of national power?
Bitcoin as a Strategic Asset
Senator Lummis, a longtime crypto advocate, argues that holding Bitcoin offers a unique advantage. Unlike gold or fiat reserves, Bitcoin is decentralized, scarce, and immune to political manipulation. These traits, she says, make it ideal for a world where digital assets are playing a larger role in cross-border finance.
Her vision is not without precedent. Countries like El Salvador have already made headlines by adding Bitcoin to national holdings. While their scale is small, the message is loud: crypto is no longer just a retail investment. It is entering the realm of global policy.
NEW: U.S. SENATOR LUMMIS SAYS THAT HAVING A STRATEGIC BITCOIN RESERVE IS THE ULTIMATE WAY OF HAVING GEOPOLITICAL ADVANTAGE
— DEGEN NEWS (@DegenerateNews) May 27, 2025
Consider this: as of 2025, more than 10 countries are actively exploring central bank digital currencies (CBDCs), while others are experimenting with blockchain-based payment systems. China’s digital yuan has already reached millions, and BRICS nations are discussing alternatives to the U.S. dollar in trade settlements. Senator Lummis sees these moves as a wake-up call. Without innovation, she warns, the U.S. risks falling behind.
A Hedge Against Uncertainty
Beyond strategy, there is a practical case for holding Bitcoin. With U.S. debt at over $36.9 trillion and rising interest costs, many are questioning the long-term stability of fiat-based reserves. Bitcoin, with its fixed supply and decentralized nature, offers an alternative that cannot be inflated or seized. This is where there are some proposals to use BTC to start paying to the US debt.
The Bitcoin Policy Institute has proposed a bold new concept called “Bitbonds” as a way to modernize U.S. fiscal strategy. With more than $14 trillion in federal debt set to mature over the next three years, these Bitcoin-enhanced bonds offer a forward-thinking solution.
BitBonds
With over $14T in US Federal Debt maturing in the next 3 years, Bitcoin-enhanced bonds are an innovative fiscal tool to address multiple critical objectives. pic.twitter.com/rwo3tmZyc9
— Bitcoin Policy Institute (@btcpolicyorg) April 2, 2025
Bitbonds would integrate Bitcoin into traditional government debt instruments, potentially attracting a new wave of global investors, improving liquidity, and hedging against inflation. Supporters argue that this approach could not only help manage refinancing challenges but also position the U.S. as a leader in digital asset adoption at the sovereign level.
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