Senator Warren says banks have ‘done really bad jobs’, advocates for CBDCs instead of Bitcoin Senator Warren says banks have ‘done really bad jobs’, advocates for CBDCs instead of Bitcoin
Senator Warren described Bitcoin as an "ephemeral token" with no value because it is not backed with anything unlike a CBDC.
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Updated: Jul. 18, 2023 at 12:49 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
U.S. lawmaker Senator Elizabeth Warren conceded that banks “have done a really bad job” while advocating for central bank digital currencies (CBDCs) because the government backs them.
In a March 31 NBC Meet The Press interview, Warren highlighted several banking industry issues — including high transaction fees, lack of speed, and lack of transparency.
Warren advocates for CBDC against Bitcoin
However, she believes the problems in the banking industry would be solved with a CBDC and not Bitcoin (BTC).
According to her, CBDCs are government-backed digital transfers that could be denominated in national fiat currencies — while Bitcoin is an “ephemeral token” with no value.
Warren noted that Bitcoin has nothing backing it except the belief in its value of those buying it. She added that the asset differs from platinum or silver because those enjoy some form of backing.
Warren also disagreed about BTC’s comparison to an artwork. She said the artwork is physically on the wall, and “I can enjoy it, or I can throw darts at it.”
On stablecoins, she noted that this asset class looks like CBDCs, but it is not the same because one can’t ascertain if they are backed by anything. “The problem with those is are there any dollars to back it up, gold, or government promise,” she added.
Warren’s anti-crypto stance
Warren’s recent statements are reminiscent of her earlier views on crypto. The Senator has criticized the crypto industry several times, pointing out the energy consumption and the use by criminals.
She recently announced her re-election campaign, partly built on the promise of creating an “anticrypto army.” To achieve this, the Senator wants to recruit conservative republicans, bankers, regulators, and watchdog groups.
There are also reports that the Senator is working with the U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler. Heritage Foundation shared evidence of coordination between the Warren office and officials of the SEC before Gensler’s appearance before Warren’s committee in 2021.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Elizabeth Warren is an American politician and former academic known for being fiercely anti-Bitcoin and anti-crypto.
Gary Gensler is an American government official and former investment banker who President Joseph Biden nominated to chair the U.S.