MicroStrategy co-founder Michael Saylor has thrown his support behind the idea of creating a strategic Bitcoin (BTC) reserve in a recent social media post.
Meanwhile, the price of the leading cryptocurrency hit a fresh record high of $75,889 on the Bitstamp exchange at 19:55 UTC.
U.S. Senator Cynthia Lummis (R-WY) initially introduced such a proposal back in July.
The strategic reserve would “bolster” the country’s balance sheet, serving as a store of value.
The legislation would establish a network of Bitcoin vaults with the highest security standards.
The US government would be purchasing a total of 1 million Bitcoins over the span of five years (200,000 coins per year). This sum would represent roughly 5% of the total supply of the largest cryptocurrency. The purchases will be conducted in “a strategic manner” in order to avoid market disruption.
The coins stored in the reserve would not be eligible for selling over the aforementioned five-year period unless particularly authorized by law, according to the proposal.
The Bitcoin reserve would need a public cryptographic attestation in order to ensure transparency. Quarterly reports would have to be published on the website of the Department of Treasury on a quarterly basis.
The idea of creating the reserve has been naturally embraced by the proponents of the leading cryptocurrency since they believe that Bitcoin could strengthen the country’s economic security.
However, some critics claim that Bitcoin is not a crucial commodity like petroleum, arguing that such a proposal would be divorced from reality. They believe that prompting Bitcoin’s mainstream adoption is not a national security objective for the US.
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