The US government is preparing to buy 1 million Bitcoin, roughly 5% of its BTC supply, as it could be the biggest financial change involving digital assets.
Rep. Nick Begich announced the Bitcoin Act, a federal initiative to establish strategic Bitcoin reserves, ensuring that the United States has a dominant position in the crypto space.
“The Bitcoin Act establishes a strategic Bitcoin reserve to strengthen national security and provide economic stability,” Begich said.
The bill uses BTC’s five-year phased acquisition, Federal Reserve remittances, money revaluation and exchange stabilization funds to ensure that taxpayer dollars are not spent.
Crypto influencer Wendio responded to the news and called him “absolutely crazy.” She noted that the US government’s plans may be bullish for Bitcoin in the long run, but also raised major concerns.
“We’re in debt, we feel we’re in a recession. We can’t afford to buy finite assets,” she said. “Bitcoin appears to be gaining value over time, but considering how most Americans live, it’s still a bit dangerous.”
Wendyo said previous government Bitcoin sales, such as Silk Road seizures, cost taxpayers to sell billions of dollars.
“Previously confiscated Bitcoin cost US taxpayers about $17 billion.
However, she acknowledged that the Bitcoin Act’s proof of reservations could be a game-changer in the transparency of government-held digital assets.
“This means that everyone can track US government Bitcoin Holdings in real time. You can’t do that with gold,” Wendyo said.
The bill also explicitly protects ownership of private Bitcoin and ensures that Americans become independent of BTC.
“Many people were worried that this bill would force Americans to hold Bitcoin through the government rather than keep it on their own. That’s not happening. That’s a good thing,” she said.
With Trump’s executive order already in place, it is rumored that several countries are considering their own Bitcoin reserves, which could kick global races for the accumulation of BTC.
“Other governments are paying attention. The US that buys Bitcoin can push prices up and now we see other countries trying to get it,” Wendio said.
If Bitcoin Act passes, the US will retain BTC as part of its national reserve along with gold, indicating historic changes in monetary policy.