As a researcher with a background in finance and technology, I have closely followed the developments in the digital currency space, particularly Bitcoin and Central Bank Digital Currencies (CBDCs). Sen. Cynthia Lummis’ recent interview with Larry Kudlow on Fox Business reaffirmed her strong stance in favor of Bitcoin and against CBDCs.
Sen. Cynthia Lummis once again expressed her support for Bitcoin during an interview with Larry Kudlow on Fox Business, while dismissing the value of Central Bank Digital Currencies (CBDCs).
During a interview with Fox Business on July 13, Senator Lummis of Wyoming highlighted the possible advantages of holding Bitcoin reserves in enhancing the US dollar‘s dominance on the global stage. Known as “Congress’ Crypto Queen,” she voiced her apprehensions towards Central Bank Digital Currencies (CBDCs), labeling them as a formidable threat due to their potential for extensive government monitoring.
Lummis expressed her delight during her conversation with Kudlow, stating, “I’m glad there won’t be a central bank digital currency, as it would mean increased surveillance of the American people. However, we need to ensure individuals can manage their own Bitcoin through personal wallets, maintaining control over their digital assets.”
Lummis, a GOP representative, frequently speaks out against the US Department of Justice for accusing firms such as Tornado Cash of operating without proper money transmission licenses.
Tornado Cash’s founders were charged with laundering more than $1 billion in criminal proceeds.
In a recent social media update on Friday, Congresswoman Lummis shared her core priorities, such as preventing the rollout of retail central bank digital currencies (CBDCs), protecting individual Bitcoin wallet management, and ensuring the US dollar maintains dominance in the coming century. Her advocacy for Bitcoin contrasts sharply with the present regulatory uncertainty, which has faced criticism from prominent figures within the crypto sector.
See below.
Bitcoin and digital assets represent the next frontier in finance. Here’s my proposed outline:
— Senator Cynthia Lummis (@SenLummis) July 12, 2024
‘Right to mine’ Bitcoin
Lummis enthusiastically endorsed Donald Trump’s proposal to mine Bitcoin in the United States. It’s important to mention that the U.S. is currently among the top countries for Bitcoin mining operations. Approximately 94% of all existing Bitcoins have already been mined.
Like Lummis, Trump has also voiced his opposition to CBDCs.
In early 2023, the four-time indicted GOP frontrunner for the 2024 election expressed concerns over Central Bank Digital Currencies (CBDCs), warning that they pose significant risks. He argued that these currencies could result in unexpected withdrawals from individuals’ accounts without clear explanation, but it is unclear what evidence supports this claim.
Trump’s stance on cryptocurrencies has varied; in the year 2019, he voiced concerns over Bitcoin and other digital currencies due to their instability and alleged involvement in illicit activities such as drug trading. Fast forward to present day, Trump – who was recently convicted for business record falsification – manages a cryptocurrency investment and sells Non-Fungible Tokens (NFTs) showcasing digitally manipulated portraits of himself.
From my perspective as an analyst, I’m not a supporter of Bitcoin and similar cryptocurrencies. In contrast to traditional money, they lack stability due to their highly volatile nature and seemingly intangible value. Unregulated crypto assets also pose risks by enabling illicit activities, such as drug trading and other unlawful transactions.
— Donald J. Trump (@realDonaldTrump) July 12, 2019
Why Trump, Lummis might be wrong
Based on Coinbase’s perspective, advocates for Central Bank Digital Currencies (CBDCs) believe that these digital currencies offer several benefits. For instance, they can facilitate faster transactions compared to traditional methods. Moreover, CBDCs have the potential to extend financial services to individuals who are currently unbanked. Lastly, these digital currencies ensure secure transactions by making them irreversible and resistant to fraudulent activities.
As a crypto investor, I would explain that Central Bank Digital Currencies (CBDCs) are the digital version of a country’s traditional paper money, which is issued by the central bank and not backed by any physical commodity.
A number of notable central banks, such as the US Federal Reserve, the Bank of Japan, the People’s Bank of China, and Germany’s Deutsche Bundesbank, are currently investigating the possibility of introducing Central Bank Digital Currencies (CBDCs).
The waning popularity of cash transactions, heightened curiosity surrounding private digital currencies, a recognized mandate for central banks to advance in digital payments, and the emergence of prominent global payment networks are fueling the escalating attention towards Central Bank Digital Currencies (CBDCs).
Lummis’s stance on Bitcoin’s merit and caution regarding Central Bank Digital Currencies (CBDCs) mirrors larger discussions about the role digital currencies will play in shaping our financial landscape.
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2024-07-13 16:40