CBDCs Are Superior To Cryptocurrency, Says Elizabeth Warren

Massachusetts senator, Elizabeth Warren, went on record to state that cryptocurrencies continue to show dangerous levels of potential fraud, scams and other criminal activities, which can no longer be ignored by the federal regulators and congress. The senator instead believes that CBDCs (central bank digital currencies) is indeed the way to go and presents a much more viable alternative as compared to the extremely volatile and unpredictable crypto industry and market. This news comes at a time when Bitcoin (BTC) was just made legal tender by President Bukele of El Salvador in his own country, which has since prompted other nations to consider doing the same in the near future, including the United States’ neighbour, Mexico.

Cryptocurrencies are once again skyrocketing in popularity, but not everyone is supportive of the new digital asset class, and interestingly enough, it tends to be the older generation as well as the official governmental and regulatory bodies and institutions that often refuse to view cryptocurrencies as beneficial.

Warren supports CBDCs

The Democratic senator went out of her way to state that a digital currency that is federally backed in nature could be a viable alternative to cryptocurrencies. She is hopeful that CBDCs can be utilized to address various issues as well as increase financial inclusion within the U.S.

To that end, it had been during a recent session where the Senate Banking Committee had discussed the possibility of introducing a CBDC backed by the government. Warren had stated that as cryptocurrencies become increasingly popular, people’s understanding of the fundamentals of this kind of technology will also increase. This will allow for the potential seamless transition to a CBDC if approved and subsequently implemented. She once again, however, stated that cryptocurrencies are not worth it, even going as far as calling the industry a ‘4th rate alternative’.

‘Crypto is bogus,’ says Warren

The 71-year-old senator claims that cryptocurrencies are just another prime example of a ‘bogus’ privatized digital currency, one which will ultimately be replaced by digital public money backed by the authorities.

To that point, Warren referred to Dogecoin (DOGE) as the main recent example of how such a high amount of volatility makes cryptocurrencies unsuitable to be utilized as an official and recognized medium of exchange. She also went on to say that, unlike the stock market, cryptocurrencies do not offer any kind of real consumer protection.

However, it should be mentioned that DOGE is not the only cryptocurrency out there, and other projects such as Ethereum (ETH), VeChain (VET), Cardano (ADA), Polkadot (DOT), Solana (SOL), Polygon (MATIC) and many more are deemed very viable and have been known to benefit society and its individuals all over the world.