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US Senator Warren Says No To Crypto But A Resounding Yes For CBDCs

Bitcoinist

Bitcoin News / Bitcoinist 106 Views

In a recent interview, United States Senator Elizabeth Warren made it clear that she is not a fan of cryptocurrencies. However, she also criticized the banking industry for high fees, lack of transparency, and lack of speed. Instead, she believes that central bank digital currencies (CBDCs) backed by the government could solve these issues. 

Senator Warren’s Thoughts On Crypto Regulations

The Senator talked about the value of cryptocurrency and what kinds of regulations she would like to see enacted. She compared cryptocurrencies to “air,” stating that digital assets are built on speculation. She compared the stablecoins to the money markets but remained doubtful whether top stablecoins are pegged to the USD as issuers claim. 

In a tweet about “sham crypto audits” and holding auditors “accountable,” she caused a stir among the Twitter crypto community by tweeting in support of the Public Company Accounting Oversight Board (PCAOB). The PCAOB issued an advisory warning investors to exercise caution when relying on proof-of-reserve audits conducted by crypto companies.

She also argued that unlike Bitcoin, which in her opinion, is an “ephemeral token” with no backing, CBDCs have the United States government’s backing and are denominated in national fiat currencies. In her view, “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.”

Bitcoin Price On April 3| Source: BTCUSDT On Binance, TradingView (CBDCs)

However, her support for CBDCs has made some question her stance on crypto. They argue that CBDCs rely on cryptographic hash functions just like decentralized cryptocurrencies. CBDCs are a form of centralized crypto; therefore, Warren’s anti-crypto stance seems to contradict her support for CBDCs.

Warren, for her position on crypto, has long been criticized for being anti-innovation. They also argue that her support for CBDCs while attacking crypto is hypocritical.

Building An “Anti-Crypto Army”

Despite the criticism, Warren has remained steadfast in her support for CBDCs. She recently announced her re-election campaign, promising to create an “anti-crypto army” of conservative Republicans, bankers, regulators, and watchdog groups. She is also said to be working with the US Securities and Exchange Commission (SEC) Chairman Gary Gensler to crack down on crypto.

Warren seems determined to continue her crusade against crypto. However, crypto supporters remain equally determined to defend their industry and push back against what they see as unfair criticism and attempts to stifle innovation. 

In recent years, the United States, through the SEC, has been cracking down on cryptocurrencies and related companies. Meanwhile, Hong Kong wants to create a crypto framework as they work on becoming a crypto hub of innovation in Asia.


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