Democratic Senator Elizabeth Warren did not lack words to criticize crypto, but considered a federally-backed digital currency as a potential solution to the problems surrounding financial inclusion in the United States.
In Wednesday’s session of the Senate Banking Committee discussing a US government-backed central bank digital currency, or CBDC, Warren said The recent explosion in cryptocurrency helped many to understand the fundamental technology on which digital currencies were based. However, he called crypto a “fourth rate alternative to real currency”.
“The digital currency has huge promise from central banks,” Warren said. Legitimate digital public money can help weed out fictitious digital private money.
When discussing being labeled as a “fake” currency, Warren cited Dogecoin (Doge) making them an example of the volatility of many cryptocurrencies unsuitable as a medium of exchange in her opinion. He called for pump and dump schemes and other obvious attempts to manipulate the prices of certain tokens.
“Crypto is a lousy investment,” the senator said. “Unlike the stock market, there is currently no consumer protection in the crypto world. As a result, honest investors and those trying to set aside some savings are at the mercy of fraudsters.”
The Massachusetts senator also expressed his opinion on crypto associated with a number of illegal activities, all “made easier with crypto”, as well as environmental concerns over crypto mining. He cited recent ransom money by hackers, which Colonial pipeline attack, caused fuel shortages for many in the United States, and claimed that some mining operations were “pulling out the mess in exchange for a chance to harvest some crypto coins.”
“Cryptocurrencies create opportunities to defraud investors, aid criminals, and make the climate crisis worse. The threats posed by crypto show that Congress and federal regulators cannot continue to hide, hoping crypto goes away. Will go. It will not happen. Time has come to fight these issues firmly.”