Rand Paul questioning if crypto could become world reserve currency

Sen. Rand Paul (R-Ky.) in a new interview questioned whether cryptocurrency could replace the dollar as the reserve currency of the world, as it continues to gain traction around the world.

“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,” Paul said in an interview on “Axios on HBO” that aired Sunday. 

The senator made headlines in 2015 when his presidential campaign announced that it would accept bitcoin donations on its website.

That announcement came after the Federal Elections Commission approved an advisory opinion in 2014 that permitted campaigns to accept bitcoin donations, subject to valuation and reporting policies.

Paul said cryptocurrency is currently bigger than he ever expected it to become back in 2015.

“I’ve been amazed at the growth of it and I’ve always been, you know, more a person who believed that our currency should be backed by something of real value like gold or silver or commodities, and always was wondering well crypto is not backed by anything either,” Paul said.

“But here’s what I’ve started to believe now is that the government currencies are so unreliable, they’re also fiat currencies, they’re not backed by anything. The dollar has been more stable than most other countries and so it is the reserve currency,” he added.

Asked how concerned he is about illegal uses of cryptocurrency and if there should be more regulation of the digital currency, Paul pointed to government oversight of private bank accounts.

“I guess I’m more concerned with government snooping into our private bank accounts, whether it’s cryptocurrency or your bank account,” he said

The senator’s comments come amid an increased focus on Capitol Hill regarding cryptocurrency, and an effort by Democrats to increase reporting requirements on banks for IRS tax collection purposes. 

A bipartisan pair of senators introduced a bill last month that aims to increase oversight of cryptocurrency mining overseas.

The legislation would direct the Treasury Department to write a report on how countries are using and mining cryptocurrency and how much has been mined since 2016 in the U.S. and other countries, then submit that report to Congress.

The U.S. has been the largest bitcoin center since the end of August, overtaking China after Beijing cracked down on cryptocurrency mining in recent months.