U.S. Senator Cynthia Lummis (R-WY) has stated her belief that bitcoin will gain increasing importance in the future, both as a form of investment and a payment method. In an episode of the Unchained podcast, she elaborated on her views about the cryptocurrency's potential benefits.
Lummis praised Bitcoin's security and autonomy: "It's freedom money," she said, "It is something that you can own, keep for yourself, that is self-custody, but you don't have to lay awake at night worrying that someone is going to steal it from you. It's very secure." She then predicted its growing relevance for younger demographics: "This is an asset that I think - especially for people aged 45 and under - will become a really important part of their retirement savings, their investment portfolio, and eventually become a much bigger part of just how they transact business every day."
According to Lummis during the podcast discussion, she believes Bitcoin will "take its place next to gold" within the next decade and function as a "digital gold." She said Bitcoin enables users to settle transactions swiftly and inexpensively, serving both as a store of value and a means of exchange. These qualities are seen by Lummis as being recognized in the commercial world as a virtue – making faster and cheaper transaction settlements possible could be a game-changer for merchants.
The senator also mentioned her pleasure at traditional financial companies such as Fidelity and BlackRock taking steps towards incorporating bitcoin exchange-traded funds (ETFs). In her view, these actions by conventional firms using ETFs could make Bitcoin more accessible to those uneasy about managing private wallets or handling Bitcoin themselves. According to Lummis, such ETFs managed by traditional financial companies could help older Americans gain exposure to Bitcoin.
Further expressing her views on cash diminishing in use, Lummis questioned whether the U.S. dollar will maintain its prominence in the global economy. She theorized about a potential shift to a "basket" of reserve currencies, driven by competing currencies and changes in how oil is denominated: "The U.S. dollar is the reserve currency, but with the rise of China and the yuan and other currencies that want to compete for a role within the reserve currencies of the world, with the potential for oil to be sold and denominated, not in U.S. dollars, but in other currencies - this may really change what constitutes the world's reserve currency." In such a scenario, Lummis stated she was "certain" that Bitcoin would be included.
Lummis emphasized that it is critical to allow technological innovation like Bitcoin and other digital assets to thrive in "freedom-loving economies." The senator also serves as a member of the Senate Committee on Banking, Housing & Urban Development.
