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CBDCs have gained tremendous traction in off late. As result lawmakers in the United States are finally warming up to the potential of these central bank digital currencies. But you do not need to be a Bitcoin hater to advocate CBDCs. In Wednesday’s Senate Banking Committee hearing, however, Bitcoin and the cryptocurrency market were trashed over and over again.
Sen. Elizabeth Warren, in an opening remark, pointed several reasons to support her argument that “cryptocurrencies have turned out to be a fourth-rate alternative to real currency.” She said that cryptocurrencies are a lousy way to buy and sell things as well as a lousy investment because of the volatility in the market and “no consumer protection.”
Calling it a haven for “illegal activity” Warren referenced the most recent colonial pipeline hack among other cyberattacks. She also pointed the environmental impacts of mining Proof-of-Work [PoW] coins, claiming that it has “devastating consequences” for the climate.
The Senator added,
“Meanwhile, cryptocurrency has created opportunities to scam investors, assist criminals, and worsen the climate crisis. The threats posted 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.”
This is undoubtedly one of the sharpest criticisms directed towards Bitcoin in recent times by a prominent lawmaker in the US. This was in complete contrast to Texas senator Ted Cruz’s latest comments on the cryptocurrency market when he said that Bitcoin has “a lot of potential.” This news comes days after El Salvador became the first country to accept Bitcoin as a legal tender.
CBDC is the need of the hour: Warren
Warren and the lawmakers are not here for Bitcoin. Instead, they have extended their support for CBDCs. While stating that central bank digital currency “has great promise,” she went on to add,
” Legitimate digital public money could help drive out bogus digital private money while improving financial inclusion, efficiency, and the safety of our financial system —if that digital public money is well-designed and efficiently executed, which are two very big “if’s.”
The latest move could, in fact, be in line with the US’s efforts to decrease China’s footprint across the world which has become a lot large in a very short span, and its behavior in other parts has grown so much more assertive.
In another related news, Twitter CEO and Bitcoin advocate Jack Dorsey unfollowed Elizabeth Warren just hours after the hearing on CBDC