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Senator Cynthia Lummis, who leads the Senate Subcommittee on Digital Assets, says the US military backs a plan to create a Strategic Bitcoin Reserve.Jamie Dimon, the CEO of a major bank, recently called that plan a waste. Lummis pushed back.
Lummis told Bloomberg the military thinks having Bitcoin on hand matters. She said it could be a tool in the economic contest with China. Some see that as a bold step. Others say its risky.
According to the senator, military leaders say Bitcoin could help in an economic showdown. They see it as a way to hold value if traditional assets get hit by sanctions or big moves from other nations.
She spoke about weapons and ammunitions being part of national security, but she added that a Bitcoin reserve is also vital. Some military voices have warned that future conflicts wont just be fought on battlefields. Money and digital assets could play a key role too.
Based on reports, Lummis introduced a bill to have the US buy and hold 1 million BTC. That would mirror what countries do with gold. The idea is to pull funds from the Treasury or Federal Reserve rather than use new budget money. It has not moved far in Congress.
Still, US President Donald Trump issued an order on March 6, 2025, to set up a Bitcoin reserve plus a digital asset stockpile for other coins. He said the government would use assets seized in civil and criminal actions to start the fund. That means some 200,000 BTC the government already has could be part of it.
Lummis unveiled a proprietary model forecasting a dramatic rise in Bitcoins price over the next decade, citing factors such as its fixed supply, growing institutional adoption, and expanding network effects.
Analysts caution that such long-term forecasts hinge on unpredictable factors like regulatory shifts, technological breakthroughs, and market sentiment, any of which could derail even the most optimistic projections.
She also praised Trump for pushing simple rules for crypto and for using digital coins as part of national strategy.
Trumps family runs a DeFi platform, a stablecoin project, and even some meme coins. Lummis thinks everyone will end up in the crypto economy sooner or later.
Jamie Dimon disagrees. He calls the Bitcoin reserve a waste of resources. Other experts worry about Bitcoins ups and downs. They say a strategic reserve shouldnt ride on something that can swing 20% in a single day.
Some economists at top universities give zero support to borrowing money to build a crypto stash. They argue it doesnt make sense against the USs nearly $36 trillion national debt. For now, the bill to buy 1 million BTC sits in committee.
Featured image from Imagen, chart from TradingView