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- Michael Saylor favors establishing a strategic Bitcoin reserve in the US.
- With the likelihood of generating up to $81 trillion in revenue, states are beginning to champion similar moves.
MicroStrategy’s co-founder and Chairman Michael Saylor recently proposed that the US establish a strategic Bitcoin reserve. Saylor thinks the Bitcoin reserve strategy could potentially create $81 trillion in wealth for the US Treasury. He argues that the move could secure the US’ position as a leader in the global digital economy.
Saylor’s Vision for BTC as a National Reserve
Saylor opined in his proposal that the US Treasury could use the wealth generated from adopting the Bitcoin strategic reserve to offset national debt. He added that the move could strengthen the U.S. dollar and boost economic growth by unlocking trillions of dollars in value.
A strategic digital asset policy can strengthen the US dollar, neutralize the national debt, and position America as the global leader in the 21st-century digital economy—empowering millions of businesses, driving growth, and creating trillions in value. https://t.co/7n7jQqPkf1
— Michael Saylor⚡️ (@saylor) December 20, 2024
According to Saylor, BTC has become valuable because of its scarcity and increasing global adoption. He predicted the global digital capital market would rise from $2 trillion to $280 trillion. He foresees US investors capturing a large chunk of this wealth.
Saylor believes a Bitcoin reserve could generate between $16 trillion and $81 trillion for the U.S. Treasury. He argues that implementing the Bitcoin reserve strategy policy could push BTC to $500,000. The MicroStrategy Chairman sees this move as a major opportunity for retail investors and institutions.
Although Saylor’s proposal received much support, it has also faced strong criticism. Economist and Bitcoin critic Peter Schiff argues the proposal would have the opposite effect of Saylor’s claims.
“It would weaken the dollar, exacerbate the national debt, and make America a laughing stock. It would deprive businesses of power, diminish growth, and destroy value,” Schiff wrote in an X post.
Ongoing Push for Bitcoin Inclusion in the US Economy
Saylor’s proposal adds to the continuing discussion over BTC’s role in national economies. While countries like El Salvador have welcomed the coin and even adopted it as a legal tender, major economies like the United States are more cautious.
Nonetheless, several legislators are pushing for the coin’s inclusion in the US economy. In a recent CNF update, US President-elect Donald Trump proposed creating a strategic Bitcoin reserve. Additionally, US states like Ohio, Texas, and Pennsylvania have proposed incorporating Bitcoin into their economies.
Representative Derek Merrin drafted a bill to create a state-managed Bitcoin fund in Ohio. This proposed bill, known as the Ohio Bitcoin Reserve Act, seeks to offset inflation and diversify the state’s financial portfolio.
Meanwhile, Texas and Pennsylvania are pushing for a Bitcoin reserve sponsored by its government. Creating a strategic Bitcoin reserve would allow Texas to hold Bitcoin accumulated from taxes, fees, and donations for extended periods.
Furthermore, Pennsylvania’s proposal offers a cushion against economic unpredictability by investing up to 10% of its $7 billion Treasury funds in Bitcoin.
The rising interest in adopting a Bitcoin strategic national reserve comes on the heels of the coin’s rise to over $100,000. However, BTC price has since dropped in value and trades at $98,226, up 3% in 24 hours as of this writing.
