A “great idea” is how Cynthia Lummis called this advice pushing the Federal Reserve to buy bitcoin. Note that this American senator from Wyoming offered her first BTC in 2013.

Senator Cynthia Lummis advises the FED to buy bitcoin

Imminent integration of bitcoin in the balance sheet of the Fed?

Senator Cynthia Lummis reportedly spoke at a panel hosted by the Orrin G. Hatch Foundation last Thursday. On occasion, she urged the FED to buy bitcoins.

“  I think it's a great idea to be honest  ” if the Federal Reserve buys bitcoin. Knowing that this institution would hold, at present, more than 40 billion dollars of foreign currency reserves.

Note that this panel discussed the future of the crypto-economy, and it was moderated by Matt Sandgren, executive director of the Hatch Foundation.

In response to a question from Sandgren, Lummis was referring to his bill: 

“  Once there is a legislative and regulatory framework, it will make a lot of sense. The fact that (bitcoin) is completely decentralized is going to make it, over time, more ubiquitous, and I think that's going to be something the Fed should keep on its balance sheet . »

Yes, but not right away

It was through Randal Quarles, former vice president in charge of supervision at the FED, that the audience heard what this institution thinks of this suggestion. Indeed, he believes that the central bank will show no haste in this direction.

Here are his words:

“  For many political and economic reasons, I think it's better to keep the Fed's balance sheet, which it's not now (but) it needs to move more in that direction – (i.e. say) entirely in Treasury bonds.  »

Lummis, a pro-Bictoin senator

The 67-year-old senator's love affair with bitcoin dates back to 2013, when she got her first digital assets. At the time, she had to buy a wedge for $350 each. While we all know its current price, set at over $41,000. Since then, she has continued to advocate for this currency signed by Satoshi.

This interest in bitcoins came to him from his son-in-law. As for her involvement in the crypto world, it's a safe bet that her previous job as treasurer of Wyoming has something to do with it. This position would have effectively taught him about the mix of assets, assets that generate income in the short term, as well as those that represent a store of value. A situation conducive to the integration of bitcoin in its mode of investment, since the latter constitutes a store of value.

And she does not hesitate to compare it with gold:

“  Bitcoin is digital gold. It is hard currency. There will only be 21 million pieces produced. »

For her, the FED had better get ahead of the traditional banks which, sooner or later, will end up accepting the integration of BTC , and other digital assets, into their treasury. And this will be preceded by the establishment of crypto-affiliated departments.

A bill on cryptos in progress?

Pro-crypto Cynthia Lummis has already undertaken several initiatives to promote bitcoin. As recently as last December, she “ quietly ” proposed a bill   to regulators and cryptocurrency players. In it, the latter could appreciate a few points aimed at clarifying the regulation of cryptos in several areas.

In particular, the creation of a self-regulatory organization (SRO) or self-regulatory body for cryptocurrencies is mentioned, which will take care of qualifying these assets as a commodity or a security. In the event of disagreement with the SEC or the CFTC , the latter will be able to make maneuvers on the regulatory level.

Lummis adds:

“  This bill can be logically divided into five or six self-contained parts. We are working with other Senate offices in both parties to see who is interested in sponsoring the banking component, the privacy component, the consumer protection component of this legislation.  »

Of course, this bill has undergone some revisions due to the comments made by the entities concerned. But the senator promises his release "  very soon  ", since he is currently in the hands of the Legislative Council.

When our rulers are won over by the cryptocurrency phenomenon, the status quo will no longer be possible. Wait and see  !

Source: The Block Crypto

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