US Senator Elizabeth Warren made it clear that she is not a fan of cryptocurrencies in a recent interview. However, she also criticized the banking industry for high fees, lack of transparency, and lack of speed. Instead, she believes that central bank digital currencies (CBDCs) backed by the government could solve these issues.
In the interview, Warren compared cryptocurrencies to “air,” stating that digital assets are built on speculation. She also expressed doubts regarding whether top stablecoins are actually pegged to the USD, as issuers claim. Despite this, Warren’s support for CBDCs has made some question her stance on crypto.
They argue that CBDCs rely on cryptographic hash functions just like decentralized cryptocurrencies, making Warren’s anti-crypto stance seemingly contradictory to her support for CBDCs.
One tweet from Warren about “sham crypto audits” and holding auditors “accountable” caused a stir among the Twitter crypto community. She expressed support for the Public Company Accounting Oversight Board (PCAOB), which issued an advisory warning investors to exercise caution when relying on proof-of-reserve audits conducted by crypto companies.
Warren argued that unlike Bitcoin, which she considers an “ephemeral token” with no backing, CBDCs have the backing of the United States government and are denominated in national fiat currencies. She stated that “if, at the end of the day, there’s a run on the stuff, everybody wants theirs out, the United States government promises there would be something to back it up.”
However, Warren’s support for CBDCs while attacking crypto has led some to criticize her for being anti-innovation. Some argue that her support for CBDCs while criticizing crypto is hypocritical.
