Massachusetts Senator Elizabeth Warren put crypto in the spotlight during a CBDCs senate hearing, warning regulators about the need to stop hiding out when it comes to digital currencies.
The Democrat senator called on fellow policymakers to focus on the problems that cryptocurrency has created for the national economy as it failed to provide millions of Americans with the benefits it supposedly would provide.
While supporting the proposition of creating a digital dollar as a means to boost the economy, she referred to crypto by stating:
“Cryptocurrency has created opportunities to scam investors, assist criminals, and worsen the climate crisis. The threats posed by crypto show that Congress and federal regulators can’t continue to hide out, hoping that crypto will go away. It won’t. It’s time to confront these issues head-on.”
In an interview with Bloomberg, Warren called the crypto market as the “wild west” while also stating that digital currencies were not a good asset to trade assets or invest. She also added that cryptocurrencies were, “an environmental disaster.”
The Senate Banking Committee Can’t Agree on CBDCs
The Senate Banking Committee hearing took place on Wednesday 9th focused on Central Bank Digital Currencies (CBDCs) and included the input of four key witnesses:
- Dr. Neha Narula from MIT
- Mr. Lev Menand from Columbia Law School, Senior Counsel at Willkie Farr & Gallagher
- Christopher Giancarlo
- Dr. Darrell Duffie of Stanford University Graduate School of Business.
All of the witnesses agree on the idea that a well-built CBDC could prove beneficial to the United States in a variety of ways ranging from providing new ways of storing a value to facilitating and improving the efficiency of transactions.
While Warren and other democrats expressed their support for the Federal Reserve’s plans of issuing a digital dollar, Republican lawmakers were not as enthusiastic with the idea.
Republican Senator Pat Tommey said there was no need for a…