Bitcoin – BTC will become a currency… and it will go very quickly!

The period is transition in the cryptocurrency sector. An ongoing shift towards ever-increasing adoption that is now impossible to stem. Because everything that has happened so far will only be considered as simple hesitant stammerings once the serious things have started. With at the center of this dynamic a Bitcoin legally assimilated to a raw material (commodity). But yet created and increasingly used as currency. A status fiercely refused by the regulatory authorities, but now recognized and/or considered by certain senior politicians. And that “will go very quickly”!

There are two distinct stories that drive Bitcoin’s short existence. Its price and its volatility, especially scrutinized by traders from rich countries. And its status as an increasingly popular autonomous digital currency in emerging countries. All of this ultimately contributes to the same dynamic: its ever-increasing adoption. With 2021 presented as a real turning point in the field of cryptocurrency adoption. And obviously, this is only the beginning.

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Because there is now a real chasm growing between the actual use of Bitcoin and its imposed legal status. A shift greatly accelerated by the entry of many payment giants into this digital arena. But also of El Salvador which has made it its official currency. While at the same time, regulatory authorities still speak of “crypto-assets” and “undeclared financial securities” to define them. But according to US Senator Cynthia Lummis, all that could change very quickly.

Bitcoin – Commodity vs Currency

It should be understood that the legal and legal status of Bitcoin does not really change the use that is already made of it. But much more the financial or political (and fiscal) management that must be applied to it by governments and central banks. A work in progress which is definitely not met with good will on the side of the regulators. With as a final example, the IMF which is trying to impose a ban on cryptocurrencies in its “economic support” package offered to Argentina. And once the consternation passes, a true example of the terror that these digital currencies impose. Even though they are not yet recognized as such.

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But things may well change faster than expected. This is in any case what affirms the American Senator from Wyoming – and member of the Senate Banking Committee – Cynthia Lummis. All in a recent interview with NBC. And the latter known as a holder and fervent supporter of Bitcoin. Probable reason why this question was posed to him by journalist Chuck Todd: “Is Bitcoin a currency or a commodity? »

I bought bitcoin as a commodity (merchandise, editor’s note). I believe it will be a currency one day, but at this stage of its existence it is a commodity just like wheat and gold. However, at some point, it will become a means of payment. And even if it is not yet the case, it will go very quickly.

Cynthia Lummis

Bitcoin – Detaching from the US Dollar

And faced with this assertion, the NBC journalist did not fail to point out that BTC – like all cryptocurrencies – is systematically denominated in dollars. A real problem for those who wish to present it as a currency in its own right. And a reality that is also very present in the stablecoin sector. An economy of digital “stability” which is based on an anchor to the USD, yet condemned en bloc by the ecosystem.

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But, according to Cynthia Lummis, this is absolutely no coincidence. With the origin of a strategy put in place by the former President of the American CFTC, Chris Giancarlo.

the (Chris Giancarlo, editor’s note) recognized the importance of Bitcoin and other cryptocurrencies being denominated in US dollars. Because the goal is to allow the United States to remain the most important player in the world economy.

Cynthia Lummis

A double-benefit strategy. Because it makes it possible to deny the status of currencies to cryptocurrencies. But while at the same time strengthening the hegemony of the dollar, even in these hostile digital lands. However, once again, the facts prevail over legal decisions. Because Cynthia Lummis explains that the true monetary strength of Bitcoin lies in the creation and the success of the Lightning Network. This by offering him an effective status as a means of (micro) payment yet absent from his white paper. And ultimately, a real revolution to come in this sector.

And finally, according to Cynthia Lummis Bitcoin will be regulated according to two different models. That is to say “exactly in the same way as current traditional assets. “With on one side the CFTC which will be in charge of its use as a raw material. But also “spot (SPOT) and forward (futures) markets”. And the SEC, which will take care of the “consumer protection” side and other regulations necessary to ensure that buyers are not subject to fraud. » Without forgetting, in parallel with all this, a role of currency that the current geopolitical situation seems determined to precipitate.

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