“Bitcoin Is The ‘Backdrop’ To A Failing US Dollar,” Says Wyoming Senator-Elect
- Wyoming U.S. Senate elect Cynthia Lummis backs Bitcoin as the backstop to a failing dollar.
- She further looks to educate other Senate members on the innovation.
- Wyoming is the benchmark state in blockchain and crypto adoption across the U.S.
Global economies continue dealing with the black swan event, the Corona Virus pandemic, which has seen governments pumping trillions of dollars into the economy to keep them afloat. However, analysts and experts in the field are worried about the effect this could have on the fiat currencies in use worldwide as inflation increases.
In case the systems fail, Cynthia Lummis, the first woman to be elected to the Senate from Wyoming, believes Bitcoin will be the ‘backdrop’ for the U.S. economy and is ready to educate the Senate on the technology.
In a recent interview on Peter McCormack’s What Bitcoin Did? Podcast, Lummis said,
“If we reach the point where we have overspent so much that things start crashing down, the black swan event occurs with regard to any fiat currency — whether it’s ours or yours or China’s or Japan’s — that there is a backstop available to every government in the world, and that backstop is Bitcoin.”
The election of a Bitcoiner to the Senate is just part of the state's steps to promote crypto and blockchain adoption. In September, Wyoming regulators approved Kraken banking state license making it the first crypto bank across the U.S., then shortly added Avanti as the second-ever crypto ban in October.
Notwithstanding, the state regulators also allowed insurance companies to start investing in Bitcoin, and other cryptocurrencies on July 1, setting a benchmark for other states in the U.S. Lummis said in the podcast,
“It should not surprise anyone that Wyoming has become the leader in policy toward Bitcoin and creating state policies that has nurtured our ability to actually charter banks that can transact banking business in Bitcoin.”
She further wants to spread the Bitcoin gospel to other Senate members once the senators are sworn in this January. Lummis aims to educate the other senators on how Bitcoin can be used alongside the dollar in debt recovery and qualities to make the dollar stronger. With the U.S. national debt skyrocketing past $27 trillion, as of writing, Lummis believes it could be unsustainable in the coming future, but Bitcoin could offer a solution. Lummis said,
“I really want to use my time in the US Senate in part to help introduce the topic of Bitcoin.”
“Increase the understanding in the Senate about Bitcoin, what it is, what it does, how it can be an asset that can grow and develop as an adjunct, so basically develop alongside our fiat currency.”
She claims that Bitcoin’s set policies could do a better job than the Fed is doing as inflation spikes up, killing the dollar's purchasing power. She stated in the podcast,
“In the case of US currency, inflation is baked into the Federal Reserve's plan for the US dollar. So it's no wonder that our buying power is eroded”
In her quest to bring Bitcoin adoption to Senate and the people, Lummis has appointed former Wyoming State Representative and co-chair of the Wyoming Blockchain Task Force, Tyler Lindholm as the state policy director of Wyoming.