U.S. Senator Cynthia Lummis said banks should embrace digital assets rather than resist them, arguing that cryptocurrencies and stablecoins offer new products and revenue opportunities for traditional financial institutions.
Summary
- Senator Cynthia Lummis said banks should embrace digital assets, arguing that stablecoins and crypto services create new products and revenue opportunities for financial institutions.
- She said blockchain-based payments can make transactions faster and cheaper for consumers, particularly for cross-border transfers.
- Lummis emphasized the need for strong safeguards, saying lawmakers and regulators are working to ensure digital assets integrate safely into the financial system.
In a Fox News interview shared on X, the Wyoming Republican said blockchain-based payments can make financial services faster and cheaper while expanding what banks can offer their customers.
Lummis says digital assets offer new opportunities for banks
“One of the things I don’t understand about the bank’s resistance is this gives them an entirely new financial product that they can offer to their customers,” Lummis said.
She pointed to digital asset custody and stablecoin payments as areas where banks could play a larger role.
“Whether it’s custody of digital assets, which three states already allow, or the use of stablecoins as a payment mechanism that’s faster and cheaper than a debit card,” she said, banks stand to benefit.
Faster and cheaper payments for consumers
Lummis emphasized that the primary benefit of digital assets would be felt by consumers. She said blockchain technology allows money to move more efficiently than existing banking infrastructure, especially for cross-border payments.
“For consumers, it’s going to be faster and cheaper to do business, whether it’s across the country or overseas,” she said. “Money can be transmitted on the blockchain more quickly than it can if you’re going through existing bank structures.”
She argued that these efficiencies could lower costs for everyday transactions and international transfers. She also noted that lawmakers and regulators have been working to ensure consumer protection as digital assets become more widely used.
“We want to make sure that not only is it faster and cheaper, but that it’s still safe,” she said. Lummis added that discussions with the Federal Reserve have focused on ensuring appropriate safety mechanisms are in place.
The senator framed digital assets as a natural evolution of financial services rather than a threat to the existing system. She said a range of stakeholders are working to integrate blockchain-based products into modern finance.
“There are a lot of interested parties in making sure that as we integrate this into the 21st century financial services industry, that it integrates beautifully,” she said.
