Bitcoin Should Be Bought by US Federal Reserve, Says Senator

Bitcoin Should Be Bought by US Federal Reserve, Says Senator

Cynthia Lummis, US Senator from Wyoming, said it would be a "great idea" for the Federal Reserve to buy Bitcoin. The senator is in favor of cryptocurrency and is a longtime supporter.

Cynthia Lummis, US Senator from Wyoming, has suggested that the Federal Reserve keep Bitcoin on its balance sheet, according to The Block Crypto. Speaking on a panel hosted by the Orrin G. Hatch Foundation on Thursday, Lummis said, "I think it's a great idea to be honest" for the Fed to buy Bitcoin as it holds over $40 billion in foreign currency reserves. Lummis was replying to a question by the panel moderator Matt Sandgren, executive director of the Hatch Foundation, who hosted the panel on the future of the crypto economy.

"Once there is a statutory and regulatory framework that will make a lot of sense," said Lummis. "The fact that [Bitcoin] is completely decentralized, is going to make it over time more ubiquitous, and I think it's going to be something that the Fed should hold on its balance sheet."

However, Randal Quarles, a former Fed vice chairman for supervision who also attended the panel, doesn't think the central bank will add Bitcoin to its balance sheet anytime soon. "For a lot of political, economic reasons, I think that it's best to keep the Fed's balance sheet, which it isn't currently, [but] it needs to move more in that direction — [that is] entirely treasuries," he said.

Lummis is a longtime supporter of cryptocurrencies and first bought Bitcoin in 2013 when it was priced at around $350. "Bitcoin is digital gold. It's hard money. There will only be 21 million ever produced," she said on the panel.

The senator also believes that traditional banks will eventually integrate Bitcoin and other digital assets into their offerings and create crypto divisions.

© 2022, Eva Fox | Tesmanian. All rights reserved.


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About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

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