Published: 01.04.2022
Article reading time:
2 minutes.
Massachusetts Senator Elizabeth Warren compared the cryptocurrency industry to the economic crisis of 2008 and suggested that the US accelerate the development of a digital dollar.
On NBC’s Meet the Press Reports, Elizabeth Warren shared her thoughts on the cryptocurrency industry. She touched on the topic of government stablecoins, saying that with their help, central banks could improve a lot in the digital space. Warren believes that it is time for the US Federal Reserve (Fed) to move in this direction and called on the regulator to accelerate the development of a digital dollar.
Asked if bitcoin will be regulated as a commodity, Warren said that sooner or later it will be controlled by the government. But how this will be done, Warren did not explain. In March, Warren introduced a bill to prevent crypto companies from serving individuals from countries under sanctions. It will empower the Financial Crime Enforcement Network (FinCEN) to identify users who transact more than $10,000 in crypto assets. The bill has been criticized by the cryptocurrency community as it goes against the philosophy of cryptocurrencies.
In addition, the senator compared the cryptocurrency industry to the mortgage crisis that began in 2007:
“The whole cryptocurrency space is like a bubble. Why is it growing? Because people tell each other that everything will be great, just like it used to be in the real estate market. How many times have people said, “Real estate always goes up. It never goes down”? These conversations went back to 2000 until the market crashed in 2008.”
The senator has always been skeptical about cryptocurrencies, considering them a favorite tool for hackers, which, moreover, has devastating consequences for the environment. Warren previously said that digital assets will not increase the population’s access to finance, since only the rich “rule” in this industry.
Source: Bits
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
