US Military Supports Strategic Bitcoin Reserve Plan Led by Senator Lummis

Senator Cynthia Lummis announced that the US military supports a proposal to establish a Strategic Bitcoin Reserve, emphasizing its potential role in an economic contest with China. Jamie Dimon, CEO of a major bank, criticized the plan as wasteful, prompting Lummis to defend it.

Military Support for Bitcoin Reserve

The military views Bitcoin as valuable for maintaining economic stability amid sanctions and geopolitical risks.
Lummis highlighted the importance of digital assets alongside traditional military resources for national security.
Some military leaders believe future conflicts will involve financial strategies as much as physical combat.

Legislative Efforts

Lummis introduced legislation to acquire 1 million BTC using funds from the Treasury or Federal Reserve, similar to gold reserves.
The proposal has not progressed significantly in Congress.
President Donald Trump ordered the establishment of a Bitcoin reserve, utilizing seized assets, including approximately 200,000 BTC already held by the government.

Price Forecasts and Criticism

Lummis predicts a significant rise in Bitcoin’s price over the next decade based on its fixed supply and increasing adoption.
Analysts caution that such forecasts depend on unpredictable factors like regulatory changes and market sentiment.
Dimon and some economists criticize the volatility of Bitcoin and question the rationale behind investing in a crypto reserve given the national debt.