Elizabeth Warren, the former United States Presidential candidate and current Senator has recently spoken about how digital assets can be of use to the unbanked. Senator Warren believes that digital assets may be the tool needed to tackle the challenges related to the traditional financial system.
Warren was a former skeptic of cryptocurrencies such as Bitcoin. She has recently changed her stance on the crypto space and has appeared to soften her idea regarding the industry during an interview on CNBC Squawk Box on Wednesday. According to Warren, she believes that digital assets could be utilized as the key instruments in tackling financial issues in the unbanked sector. She stated that larger banks have been met with enormous failures to reach the unbanked communities in the country and that cryptocurrency may be the answer to it.
Senator Warren emphasized the issues regarding the existing financial system. She strongly believes that the current financial system has plenty of problems and that crypto-based solutions could be the answer to resolving the issues. She suggested the idea of implementing digital currency to examine where it may be best suited, while also implementing its risk in the financial system.
Although she has witnessed the potential of cryptocurrency to tackle challenges and resolve issues in the existing financial system, Warren is still concerned regarding the investment risk of cryptocurrency. She reiterated her previous statement regarding her concerns that small-time investors and taxpayers pay the price of an unregulated market system.
The Senator’s latest comment on crypto space was her reference to crypto enthusiasts, calling them a group of miners. She believes that cryptocurrencies such as Bitcoin are not genuine forms of currency and that the central bank digital currencies held a great deal of promise more so than crypto.
Senator Warren also compared the similarities of the current crypto market to that of snake oil merchants before the law started to regulate drugs. In order to discourage fraudulent activities in the crypto industry, and make it safe, a strong regulatory framework is in order. “I don’t want to wait until a whole of people, a whole of small traders, have been completely wiped out. I think the rules of the road are there at the beginning that people say, we’ve got a cop on the beat’, give people a lot of confidence” the Senator stated.