Recently, during an interview, US Senator Elizabeth Warren cited the problems of the banking sector in the United States. She mentioned in particular the high fees, the slowness in the transactions and the lack of transparency. For the American senator, there is indeed a solution to solve these problems. But, it is definitely not about the cryptos. Instead, Elizabeth Warren suggests turning to government-backed CBDCs.
US Senator Elizabeth Warren compares CBDCs and Bitcoin
While Elizabeth Warren’s anti-crypto agenda is criticized, the US senator continues to show her opposition to cryptos. During her recent interview, she clearly demonstrated this, while maintaining that CBDCs would be very useful to the banking system. Indeed, Elizabeth Warren believes that central bank digital currencies can solve problems in the banking sector.
The US senator finds CBDCs more reliable than a crypto like bitcoin (BTC). According to her, the latter is a ephemeral token which has no support. On the other hand, CBDCs are supported by the United States government. Moreover, they are linked to national fiat currencies.
Elizabeth Warren has explained : “ If, at the end of the day, there is a rush on these products, that everyone wants to take them out, the United States government promises that there will be something to support them “.
The community questions Warren’s position
The US senator’s anti-crypto stance has been called into question after she voiced her support for CBDCs. The community believes that these are a form of cryptos. In fact, what differentiates them from a crypto like bitcoin is that they are centralized.
In this context, some have said that Warren contradicts himself supporting central bank digital currencies. They also criticized the senator for the anti-innovation her anti-crypto stance represents.
The least we can say is that Senator Elizabeth Warren does not trust cryptos. According to her, digital assets are only built on speculation. Moreover, the US senator doubts that the major stablecoins are actually backed by the US dollar. Also, she recently spoke about fake audits in the crypto industry. She urged the US audit watchdog to fight them for a proper regulatory framework.
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