Senator Elizabeth Warren of the United States says no to cryptocurrencies but a resounding yes to CBDCs
In a recent interview, Senator Elizabeth Warren of the United States made it plain that she dislikes cryptocurrencies.
Elizabeth Warren criticized the financial industry for its excessive fees, lack of transparency, and slowness. She believes that government-backed central bank digital currencies (CBDCs) could solve these problems.
The Senator discussed the value of cryptocurrencies and the regulations she would like to see implemented. She likened cryptocurrencies to “air” and stated that digital assets are founded on speculation. She compared stablecoins to the money markets, but remained skeptical that leading stablecoins are pegged to the USD, as issuers said.
Supporting the Public Company Accounting Oversight Board in a tweet about “fake crypto audits” and holding auditors “accountable” caused a commotion in the Twitter crypto community. The PCAOB issued a notice cautioning investors against relying on proof-of-reserve audits conducted by cryptocurrency companies.
She also argued that, unlike Bitcoin, which is an “ephemeral token” without security, CBDCs are backed by the United States government and denominated in national fiat currencies. According to her, “if, at the end of the day, there is a run on the stuff and everyone wants theirs out, the U.S. government guarantees there will be something to back it up.”
Nonetheless, her support for CBDCs has led some to doubt her crypto stance. They contend that CBDCs utilize cryptographic hash functions in the same manner as decentralized cryptocurrencies. Since CBDCs are a type of centralized crypto, Warren’s anti-crypto position appears to contradict her support for CBDCs.
Warren has been accused of being anti-innovation due to her stance on cryptocurrencies. In addition, they argue that her support for CBDCs while assaulting cryptocurrencies is disingenuous.
Warren has remained steadfast in her support for CBDCs despite criticism. She recently declared her re-election bid and pledged to form an “anti-crypto army” of conservative Republicans, financiers, regulators, and watchdogs.
She is also reportedly collaborating with Gary Gensler, the chairman of the US Securities and Exchange Commission (SEC), to clamp down on cryptocurrencies. Warren appears committed to continuing her crusade against cryptocurrency.