CBDCs have gained tremendous traction in off late. As outcome lawmakers from the United States are finally warming up to the potential of these central bank electronic monies. But you don’t need to be a Bitcoin hater to urge CBDCs. In Wednesday’s Senate Banking Committee hearing, nevertheless, Bitcoin along with the cryptocurrency marketplace were trashed over and over again.
Sen. Elizabeth Warren, in an opening remark, directed many 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 get and sell items as well as a lousy investment because of the volatility in the sector and”no consumer protection.”
Calling it a sanctuary for”illegal activity” Warren referenced the most recent colonial pipeline hack among other cyberattacks. She also pointed out the environmental impacts of mining Proof-of-Work [PoW] coins, asserting 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 among the sharpest criticisms directed towards Bitcoin lately by a prominent lawmaker in the US. This was in complete contrast to Texas senator Ted Cruz’s latest remarks on the cryptocurrency market when he said that Bitcoin has”a lot of potential.” This news comes days after El Salvador became the first nation to accept Bitcoin as a lawful 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 saying that central bank electronic currency”has great promise,” she went on to include,
” 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.”