U.S. Senator and crypto advocate Cynthia Lummis suggested that the Federal Reserve buy bitcoin for long-term storage.
At a conference on the future of the cryptocurrency economy, Cynthia Lummis stated that the US Federal Reserve could hold BTC on its balance sheet. Given that the regulator has more than $40 billion in foreign currency reserves, Lummis called the idea of the agency buying the first cryptocurrency a great idea:
“Once cryptocurrencies are in U.S. law and regulations are in place to regulate them, the Fed buying bitcoin will make sense. Bitcoin is completely decentralized and will become even more widespread over time. The Fed should keep this crypto asset on its balance sheet.”
However, US Fed Board of Governors Randal Quarles, who also attended the conference, said that this is definitely not going to happen anytime soon. To save and increase the state budget, buying bitcoin is not suitable, given the high volatility of the asset. Treasury bills are a better bet, Quarles said.
Lummis took the opportunity to reiterate her first bitcoin purchase in 2013, when it was trading at around $350 per coin. Her son-in-law taught her to buy cryptocurrencies, the senator added. She first showed interest in digital currencies when she was Treasurer of Wyoming. Lummis began to explore investments in different types of assets that could generate short-term income or hedge the risks of losing funds from inflation. It was then that she learned about bitcoin and began to consider it a store of value.
In conclusion, Lummis called bitcoin “digital gold” and “hard money”, the supply of which is limited to 21 million coins. The senator is sure that eventually all traditional banks will add support for payments in bitcoin and other crypto assets, as well as create their own cryptocurrency divisions.
In December, Lummis announced a bill that aims to bring clarity to the regulation of the cryptocurrency industry. The senator said that after public consultations, the bill was revised, and now it is under consideration in the Legislative Council.
Source: Bits
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