Elizabeth Warren Urges the United States to Establish a CBDC

“I believe it is past time for us to go on that path,” the Democratic senator told NBC’s Chuck Todd during a Thursday night interview.

Senator Elizabeth Warren (D-Mass.) of the United States of America believes the time has come for the country to develop its own central bank digital currency (CBDC). Warren spoke on NBC’s “Meet the Press Reports” with Chuck Todd on Thursday at 10:30 p.m. ET. NBCUniversal provided CoinDesk with a partial transcript of the discussion.

“There are so many things that banks do incorrectly that, if you say, ‘We could enhance it in a digital environment,’ the response is, ‘Certainly.’ However, in that scenario, how about a central bank-issued digital currency? “Todd was informed by Warren. “Yes, I believe it is time for us to take that step.”

In response to Todd’s inquiry on whether Bitcoin would be regulated as a commodity, Warren said, “I believe it will wind up being regulated,” citing the subprime mortgage financial disaster that began in 2007. She made no mention of the possible format of rules.

Warren unveiled a new measure in March to prohibit bitcoin firms from transacting with sanctioned entities. The Digital Assets Sanctions Compliance Enhancement Act, proposed by Sens. Jack Reed (D-R.I.), Mark Warner (D-Va.), and Jon Tester (D-Mont. ), would empower the US president to penalise non-US-based cryptocurrency corporations that aid in sanctions evasion.

Regarding the senator’s assessment of bitcoin as “”Like this decade’s real estate bubble,” Warren said, “the whole digital world has operated in a manner very similar to how a bubble operates. What is the reason for the elevation? It’s moved up on the fact that everyone is telling everyone else that it’s going to be fantastic, just as it was with the real estate market. How many times have you heard, ‘Real Estate always increases in value.’ It’s never going to go down?’ They said this decades ago, prior to the latest housing bubble. They said this in the 2000s, prior to the 2008 financial crisis.”

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