pull down to refresh
0 sats \ 5 replies \ @Undisciplined 21h \ on: Lummis Bitcoin Strategic Reserve Details bitcoin
Are they going to purchase 200k a month, in addition to whatever is acquired from those other mechanisms?
200k a month
200k per year, but yes that amount would be "in addition to" whatever holdings other government agencies have or acquire.
Further, the goal is to get states to contribute their holdings via segregated accounts (basically .gov becomes coinbase custodians for states).
reply
Thanks for the correction. That means the SBR would actually end up holding more than one million bitcoin.
reply
Yes, reading the bill the idea is that after 20 years the SBR could sell up to 10% per year.
However I think that is a naive take....I think by the time we reach that point, the SBR would better be used a collateral for fiat loans. Or possibly better, is US Treasury issues "redemption certificates" using SBR as backing. We could wind up with a situation where US Treasury starts issuing its own money again, backed by SBR. (This is probably unlikely, but theoretically possible).
As an aside, Texas currently has a state Gold Depository bank. The idea is you deposit gold into Texas State controlled vaults and they issue you a "redemption certificate" for you to come redeem the physical gold at a later time. Clearly the idea was constructed with the idea that Texas State could become a "currency issuer" of sorts if people were to trade the certificates.....
A similar thing could happen via US Treasury / SBR.
reply
Twenty years from now will likely be a much different world. We could easily be in a scenario of bitcoin being legal tender. In which case, that reserve would basically act as a buffer to smooth out imbalances between revenues and expenditures.
reply
this
reply