The Wyoming Republican senator, Cynthia Lummis, believes the Federal Reserve should consider holding bitcoin on its balance sheet. Lummis said that once a regulatory policy is in place, it will “make a lot of sense” on the crypto webinar panel of the Orrin G. Hatch Foundation.
An ex-Vice Chairman of the Federal Reserve believes that crypto perspectives have changed with the advent of Stablecoins.
This week, the Orrin G. Hatch Foundation published a webinar starring Bitstamp CEO Bobby Zagotta, former Federal Reserve vice chairman Randal Quarles, and Republican senator from Wyoming Cynthia Lummis.
Matt Sandgren, the webinar’s host, mentioned to Quarles that Wall Street and Washington were sceptics of bitcoin in its early days. According to Sandgren, things are changing now, and he asked the former Federal Reserve vice chairman if he also agreed attitudes have changed.
The original purpose of bitcoin and similar crypto-assets wasn’t really clear in the early years, Quarles explained. They solved some technical problems in the payment system, but their volatility made them unsuitable as a payment method.
There seem to be two primary attractions: independence from the regulated monetary system and anonymity. Neither are going to be terribly attractive to Washington.” Quarles continued: Investors on Wall Street will take their time when considering a novel technology that’s likely to attract unwanted attention from law enforcement and regulators.
He then stated that things are changing now, one of the reasons being Stablecoins. Since Stablecoins dampen volatility, they are more useful, he stated.
Lummis: I think holding bitcoin at the Fed would be a good idea
Upon hearing Quarles’ comments and being told what cryptocurrency is by Bitstamp’s Zagotta, Lummis said she thought it was a brilliant idea to hold bitcoin on the Federal Reserve’s balance sheet.
The fact that bitcoin is a decentralized currency will make it more ubiquitous over time,” Lummis observed. The senator from Wyoming went on to say: I believe the Federal Reserve should hold bitcoin in its balance sheet.
Senate Majority Leader Cynthia Lummis has been a supporter of bitcoin and other digital currencies for quite some time and recently thanked God for bitcoin when discussing how to raise the debt ceiling. Lummis revealed in the first week of October that she has acquired more bitcoin and believes it to be a great store of value.
In contrast, panellist Quarles did not agree with Lummis, saying that the US central bank is unlikely to add BTC to its balance sheet. “For a whole bunch of political, economic reasons,” he said. At the panel webinar, Lummis reiterated her belief in bitcoin as a store of value, scarce, and predictable. “Bitcoin is digital gold – it’s hard money. We’ll only see 21 million,” Lummis said.
