United States Senator Elizabeth Warren has recently expressed her disapproval of cryptocurrencies, stating that they are built on speculation and compared them to “air.”
However, she also criticized the banking industry, pointing out high fees, lack of transparency, and lack of speed. Instead, Warren believes that central bank digital currencies (CBDCs) backed by the government could solve these issues.
During an interview, Warren discussed the value of cryptocurrency and what kinds of regulations she would like to see implemented. She compared stablecoins to money markets but remained doubtful whether top stablecoins are pegged to the USD as issuers claim. She also expressed her concern about “sham crypto audits” and called for accountability for auditors.
Warren argued that unlike Bitcoin, which she views as an “ephemeral token” with no backing, CBDCs have the United States government’s backing and are denominated in national fiat currencies. She believes that CBDCs offer a safer alternative to decentralized cryptocurrencies, as they rely on cryptographic hash functions just like decentralized cryptocurrencies.
Warren stated, “If, at the end of the day, there’s a run on the stuff, everybody wants theirs out, the United States government promises there would be something to back it up.”
However, some have criticized Warren’s support for CBDCs while attacking decentralized cryptocurrencies, arguing that CBDCs are a form of centralized crypto. They also claim that Warren’s anti-crypto stance contradicts her support for CBDCs.
Warren’s position on cryptocurrency has long been a topic of debate, with some accusing her of being anti-innovation. Nonetheless, her support for CBDCs shows that she recognizes the potential of blockchain technology and sees the need for innovation in the financial industry.
