The US must seriously look into diversifying its national balance sheet and that should, ideally, include Bitcoin (BTC), according to recent statements made by Representative Nick Begich, who is one of the US lawmakers interested in supporting a bill that may see the nation acquiring as many as 1 million Bitcoins (should it materialize but chances of this happening anytime soon are fairly slim).
The Alaska Republican claims that he is a firm believer that the US needs to diversify its national balance sheet. These statements were reportedly made on Wednesday (October 1st) at the BTC in D.C. conference that took place in Washington, D.C.
He pointed out that there’s a great level of emphasis on the gold bullion, which along with Silver has reached all-time highs, perhaps as part of a response to the recent US government shutdown. During times of economic and political uncertainty, investors often resort to what they perceive to be as safe havens, including these precious metals and commodities.
Notably, the US lawmaker also thinks the US should have an additional strong emphasis on bitcoin, the flagship cryptocurrency.
Begich and Senator Cynthia Lummis, R-Wyo., had put forward the “Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act,” or BITCOIN Act.
Should this actually pass, then the bill could lead to the establishment of Bitcoin as a strategic US government-backed reserve asset.
This could significantly add to US President Donald Trump‘s executive order to establish a permanent BTC holdings reserve that would be similar to the existing gold reserves.
The newly proposed legislation includes a clear plan for accumulating 1 million bitcoin over a period of 5 years via the incorporation of some budget neutral strategies.
The proposed bill appears to further expand on Trump’s executive order, which has prohibited selling any seized BTC or other digital assets that have been forfeited to the American government via any type of criminal or civil cases and are to maintained in an independently-held stockpile.
It’s worth noting that Senator Lummis and industry professionals like Strategy‘s Michael Saylor have pointed out on several occasions that adopting and accumulating BTC gradually over an extended timeframe could help with paying off the huge US government debt which is around $30 trillion.
Should Bitcoin continue to appreciate at an approximate CAGR of 30%, then this could be achievable to a certain extent. Of course, there’s no guarantee of this actually happening.
Meanwhile, governments in countries like El Salvador have already pursued fairly aggressive Bitcoin accumulating strategies, which appear to be paying off so far. However, nobody can say with complete certainty whether these strategies will be effective over a period of multiple years or decades.
