Cynthia Lummis, a US senator from Wyoming, is encouraging the US Federal Reserve to convert some of its cash into Bitcoin (BTC). Convinced of the bright future of cryptocurrencies, she says it won’t be long before traditional banks integrate digital assets into their services.
Senator Cynthia Lummis wants the US Federal Reserve to invest in Bitcoin (BTC)
On February 17, 2022, US Senator Cynthia Lummis confirmed her interest in Bitcoin (BTC). At a panel hosted by the Orrin G. Hatch Foundation, a foundation aimed at improving dialogue between political parties, the Wyoming senator encouraged the US Federal Reserve to add Bitcoin to its treasury.
She believes that part of the $40 billion foreign currency reserve held by the US central bank should be used to buy Bitcoin (BTC).
“I think it’s a great idea to be honest. Once there is a legislative and regulatory framework, it will make a lot of sense,” says Cynthia Lummis.
The Republican senator assures that the regulatory measures are an opportunity for the cryptocurrency sector. While stressing that cryptoassets are not the preserve of criminals, Cynthia Lummis believes it is important that a clear regulatory framework is put in place to prevent abuse. Once legislation is in place, especially against money laundering, the industry should emerge stronger, she argues.
“The fact that Bitcoin is completely decentralised is going to make it more and more ubiquitous over time, and I think it’s going to be something that the Fed should hold on its balance sheet,” the senator said.
Cynthia Lummis, the pro-Bitcoin Senator
Cynthia Lummis has never hidden her growing interest in Bitcoin. Convinced that the US dollar is likely to lose value over time, she is actually encouraging Americans to prepare for retirement by investing in the cryptocurrency. The Republican says she bought her first bitcoin in 2013 with the help of her son-in-law. She currently holds 5 bitcoins, or nearly $200,000 at Bitcoin’s current price.
“Bitcoin is digital gold. It’s hard money. There will never be more than 21 million of it,” says Cynthia Lummis, highlighting the intrinsic scarcity of the mother of all cryptocurrencies.
The term “hard money” refers to a currency that has intrinsic economic value, like a coin made of gold. The term contrasts currency backed by a commodity that has value, such as gold, with a currency whose only value is decreed by a central bank, such as the dollar or the euro.
“Traditional banks will eventually integrate digital assets, especially Bitcoin, alongside the US dollar and other fiat currencies,” the senator prophesies.
According to the senator, traditional banks are on the verge of embracing Bitcoin and cryptocurrencies to meet the high demand from Americans, especially minorities. Many banks around the world have already announced the launch of offerings that allow their customers to invest in cryptocurrencies. This is notably the case of the Commonwealth Bank of Australia (CBA), the largest bank in Australia, or Morgan Stanley, an American investment bank.
To push the adoption of cryptoassets, Cynthia Lummis announced that she is working on a bill to establish a regulatory framework that protects consumers without stifling innovation. The bill calls for the creation of a new body solely dedicated to overseeing the cryptocurrency industry.
This regulatory body would be under the control of the Commodity Futures Trading Commission and the U.S. Securities and Exchange Commission. The bill has been discussed in secret with regulators and major industry players. It will be made public shortly.
