HomeLatest NewsKey Words: Rand Paul: Crypto could become world’s reserve currency if government trust falls

Key Words: Rand Paul: Crypto could become world’s reserve currency if government trust falls

“‘Well, I’ve started to question now whether or not cryptocurrency could actually become the reserve currency of the world as more and more people lose confidence in government.’”

That was Sen. Rand Paul in a recent interview with Axios discussing the future of cryptocurrency in the U.S.

The Republican from Kentucky cited a lack of trust in government as the reason more people may turn to cryptocurrency.

Bitcoin
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-1.05%
,
ethereum
ETHUSD,
-1.02%

and other cryptocurrencies are not regulated by the U.S. government and, unlike the dollar
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+0.14%
,
are not backed by the U.S. central bank.

It’s not clear whether there is a connection between Americans’ trust in government and their interest in cryptocurrency, as Paul claims, but views of local and state government are near record lows, according to a recent Gallup survey. And just 39% of people trust the federal government, according to the same survey.

This is not the first time Paul has touted cryptocurrency — during his bid for the Republican nomination for president in 2016, Paul’s campaign accepted donations in bitcoin, in addition to donations in U.S. dollars.

In 2014, Paul said he would be more bullish on crypto if it were backed by stocks.

Key Words (September 2020): Watch as Anthony Fauci hits back at Rand Paul over herd immunity: ‘You’re not listening’

As crypto trading becomes more popular, companies are trying to capitalize on rising interest — Walmart
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-0.60%

has begun allowing shoppers to buy bitcoin at in-person kiosks, and Mastercard
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+0.35%

is set to announce bitcoin applications for banks and merchants, including wallets and bitcoin credit cards.

Bitcoin prices reached nearly $67,000 last week, a new high. The record came a day after the debut of the first bitcoin-linked exchange-traded fund, the ProShares Bitcoin Strategy ETF
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-1.34%
.

Earlier in 2021, El Salvador became the first country in the world to adopt bitcoin as legal currency. El Salvador also uses the U.S. dollar as legal tender.

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