Bitcoin advocate Lummis: „People don’t need a bank“
US Senator Cynthia Lummis answered questions from the blockchain company Chainalysis in an interview. She more than lived up to her reputation as a Bitcoin advocate. She is coupling a BTC education mission with her role as a senator.
Cynthia Lummis is something like the extended arm of the crypto community in Congress. As a senator for the state of Wyoming, she stirs the Bitcoin promotional drum in US politics like no other and also acts as a female mouthpiece for the community in a still male-dominated crypto scene. In an interview with the renowned blockchain analysis company Chainalysis, Lummis let us look into her cards regarding future goals and gave an optimistic outlook on the future of the crypto economy.
Lummis‘ first exposure to Bitcoin was as State Treasurer for Wyoming. As such, she had been looking for suitable „stores of value to save the US dollar“ years before the pandemic was to put the central banks‘ money-printing machines into permanent operation. There were various reasons why Bitcoin Up was chosen. The most compelling argument for her, however, was the limited supply of the asset. With only 21 million units, Bitcoin Supply is fixed and unchangeable by code. This makes Bitcoin not exclusively but ultimately a „better store of value than the dollar“.
While she was initially wearily ridiculed by her colleagues for her extravagant theses, the monetary policy effects of the Corona crisis ultimately confirmed her view. The central banks‘ expansionary money supply is „destroying the value of the US dollar“. The fact that the value of the reserve currency is increasingly eroding is also prompting more and more US citizens to look for suitable stores of value to protect their savings from demonetization.
A BTC education mandate
But prejudices and misunderstandings still stand in the way of widespread adaptation at the political level. It is true that bitcoin acceptance has made great progress since last year. This is evidenced not least by the growing number of established banks, asset managers and companies that are increasingly entering the crypto infrastructure. But politics is still lagging behind this wake-up moment: „The Senate doesn’t know much about Bitcoin“. This status quo needs to be broken up.
Therefore, Lummis has made it her mission to put Bitcoin on the political agenda. She wants to „educate and inform other people“. Education is the key through which citizens also show „more interest“ in the crypto issue. One just has to make sure „that senators are among them“. Therefore, she invites „senators and companies to talk about Bitcoin“ to raise awareness of the „human infrastructure behind blockchain“.
In conversations with colleagues, the eternal counter-arguments still emerged. Lummis only wearily counters the killer argument that Bitcoin is just a vehicle for illegal financial transactions: In terms of financial crime, „Bitcoin is less dangerous than fiat money“. Amanda Wick, Chief of Legal Affairs at Chainalysis, adds: „Only a marginal part of all BTC transactions are criminal“. However, she says this view shows that there is still work to be done.
Last but not least, according to Lummis, prejudices break down over several generations. The Senate is „full of grandparents“. It is not surprising that there is a lack of basic understanding for new technologies. Ultimately, there is a need for practical examples that demonstrate the advantages of the crypto-economy.
Wyoming leads the way
Lummis cites the state of Wyoming, which she represents in the Senate, as an example. Wyoming is considered a centre of attraction for the domestic crypto and blockchain industry because of its crypto-friendly regulations. In this respect, Wyoming is „miles ahead of other states“. She hopes that the spark will also spread to other states. After all, it is of utmost importance „to have a legal framework in which Bitcoin can operate legally“.
Overall, however, Lummis is extremely optimistic about the crypto future. „Bitcoin is maturing into a mainstream product“ that is spreading across the globe. The immense potential is ultimately shown by the possibility of including disadvantaged population groups in a global financial system: „Anyone can buy, own and store Bitcoin.
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