Senator Cynthia Lummis, a key figure in the Senate’s digital assets subcommittee, believes the US military is on board with a plan to create a massive Bitcoin reserve. This idea, however, isn’t universally popular.
The Military’s Bitcoin Strategy
Lummis claims military leaders see Bitcoin as crucial for national security, especially in economic conflicts with countries like China. They believe it could be a valuable asset if traditional financial systems are disrupted by sanctions or other geopolitical events. The senator argues that just as weapons and ammunition are vital, so too is a Bitcoin reserve, highlighting the growing importance of digital assets in modern warfare.
Political Moves and Presidential Action
Lummis herself proposed a bill to buy 1 million Bitcoin for a US reserve, similar to how countries hold gold reserves. The plan would use existing government funds, not new budget allocations. While this bill hasn’t gained much traction in Congress, former President Trump issued an executive order in 2025 to establish a Bitcoin reserve and a broader digital asset stockpile. This reserve would leverage Bitcoin already seized by the government, potentially adding 200,000 BTC to the initiative.
Bitcoin’s Price: A Bold Prediction
Lummis is bullish on Bitcoin’s future, predicting a massive price surge over the next ten years. Her prediction is based on factors like Bitcoin’s limited supply, increasing institutional adoption, and network effects. However, experts warn that such long-term forecasts are inherently uncertain, depending on regulatory changes, technological advancements, and overall market sentiment. She also praised Trump’s crypto-friendly policies and his integration of digital currencies into national strategy, noting that his family’s involvement in various crypto projects demonstrates a growing acceptance of the technology.
Doubts and Concerns
Not everyone agrees with Lummis’s vision. Jamie Dimon, CEO of a major bank, dismissed the Bitcoin reserve as a waste of money. Other critics point to Bitcoin’s volatility, arguing that its price swings make it unsuitable for a strategic reserve. Some economists also question the wisdom of borrowing money to build a crypto reserve, especially given the US’s substantial national debt.
The future of the proposed Bitcoin reserve remains uncertain, with the bill to purchase 1 million Bitcoin currently stalled in committee. However, the debate highlights the growing influence of cryptocurrencies in geopolitical strategy and national security discussions.
