Democratic senator and former US presidential candidate Elizabeth Warren, a member of the Senate Banking Committee, again commented on cryptocurrencies. Also, about central bank digital currencies (CBDC).
“CBDCs Can Help Millions of Unbanked People.”
This time on CNBC’s Squawk, popular Sen. Elizabeth Warren argued that: “We have a lot of problems in our financial system right now. One of them are the large banks that control and put a large part of the economy at risk».
«The question we have to ask ourselves is to look at the crypto design, to see where it can be better. But also to see where you can inject your own risks into the system».
CBDCs can help bank failure
In fact, when asked by presenter Andrew Sorkin if cryptocurrencies could disrupt the modern financial system in a positive way, Elizabeth Warren claimed that digital currencies are interesting. And central bank digital currencies (CBDCs) are interesting in particular.
«The big banks have largely failed to reach consumers across the country. Digital currencies and digital currencies issued by the central bank (CBDC), can represent an answer there».
In particular, CBDCs can be helpful when dealing with millions of unbanked people. Therefore, Warren called this “a huge failure of the big banks.” Since they cannot reach consumers across the United States and provide them with banking services.
In short, the central bank digital currency (CBDC) may be a response to the failure of large banks to reach consumers across the country. Particularly the unbanked.
For this purpose, Maya zehavi, a founding board member of the Israeli Blockchain Industry Forum, said that he tends to agree with Elizabeth Warren’s philosophy. But, he noted that Warren does not see how current CBDC designs cement the TBTF.
Elizabeth Warren and the regulation of cryptocurrencies
«I don’t want to wait for a good number of people, a good number of small investors, a good number of small traders to be totally wiped out.».
Definitely, Warren indicated on CNBC that it is not the only question: “The question is how do you target? They are the big boys, who wins when there are no cops in the round? They are the greats. Indicating, that you want regulations to be established earlier.
For his part, Warren sent a letter to Treasury Secretary Janet Yellen asking for stricter crypto regulation. Asking him to turn to the Financial Stability Supervisory Board, to act urgently.
«The longer the United States waits to adapt the proper regulatory regime for these assets, the more likely they are to become so intertwined in our financial system. That there could be potentially serious consequences if this market is affected».
What about taxes?
When it comes to taxes, Warren believes that there should be no difference as to where a person has their capital. Cryptocurrencies shouldn’t be tax-exempt.
«Whichever way you hold your assets, I think there should be an annual tax on that».
In closing, has Elizabeth Warren softened her stance on the cryptocurrency industry? Leave your opinion in the comment box.
I say goodbye with this phrase from Max Keizer: «I think anyone who is interested in keeping their money safe from the criminal banking system. I would like gold, silver and Bitcoin».