Senator Warren says banks have ‘done really bad jobs’, advocates for CBDCs instead of Bitcoin


CoinDesk Consensus

US Senator Elizabeth Warren has admitted that banks have “done a really bad job” as the government backs Central Bank Digital Currencies (CBDCs).

March 31st NBC Meet the Press In the interview, Warren highlighted several problems in the banking industry, including high transaction fees, lack of speed and lack of transparency.

Warren Endorses CBDC Against Bitcoin

However, she believes that CBDC, not Bitcoin (BTC), will solve the banking industry’s problems.

According to her, CBDC is a government-backed digital money transfer that can be denominated in each country’s fiat currency, while Bitcoin is a “temporary token” with no value.

Warren pointed out that nothing underpins bitcoin other than the people who buy it believe in its value. She added that assets differ from platinum and silver because they enjoy some form of backing.

Warren also disagreed with comparing BTC to a work of art. The artwork is physically hung on the wall and “you can have fun with it or throw some darts at it,” she said.

As for stablecoins, she noted that while this asset class is similar to CBDC, it is not the same because you cannot be sure it is backed by something. “The problem with them is that there’s dollars, gold, or government commitments to back it up,” she added.

Warren’s Anti-Crypto Stance

Warren’s recent remarks recall her earlier views on cryptocurrencies. Senators have criticized the cryptocurrency industry several times, pointing to energy consumption and criminal use.

She recently announced a re-election campaign, partly based on a promise to create an “anti-crypto army.” To accomplish this, senators want to recruit conservative Republicans, bankers, regulators, and oversight groups.

There are also reports that the senator is working with US Securities and Exchange Commission (SEC) Chairman Gary Gensler.heritage foundation share Evidence of coordination between Warren’s office and SEC officials prior to Gensler’s appearance on Warren’s committee in 2021.

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