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Elizabeth Warren sees hope in bitcoin, discusses its role in meeting

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The U.S. lawmaker, Elizabeth Warren on Wednesday reiterated that the whole addressing the committee focused on CBDC, which met during the day had discussed the probability of bitcoin being in use. 

While there are countries that are accepting bitcoin and other cryptocurrencies with open arms, there are some who are likely to be debating making it legalized in their country. 

Where the U.S. lawmaker may be looking forward to a Central bank digital currency (CBDC), the talks around bitcoin are also warming up. In a recent Senate Banking Committee meeting, where the attendees were attentive to CBDC and full attention was on the subject, a second thought on bitcoin was also propelled by far more attention from the group of lawmakers. 

The meeting which was led by Sen. Elizabeth Warren (D-Mass) will in coming days likely to debate further on the cryptocurrency sector as well. There was the sharpest criticism of bitcoin in the U.S. discussed by lawmakers to date.

Others welcome crypto with open arms 

Despite the countries being sceptical of adopting and making cryptocurrency legalized, there are countries like El Salvador that have made bitcoin a legal tender in the country. They have accepted the cryptocurrency with open arms. 

Hence Warren might take up this issue in the Senate and will likely discuss it in other upcoming hearings. This will be done along with the other counterparts in the House of Representatives holding similar sentiments next week. 

Digital currency outcomes

While addressing the members at the meeting, Warren said that if one has to send the money to someone, then the digital currency can be easier and faster. But to realize the advantages, the digital versions have to be secured, stable and accepted everywhere. 

Neha Narula, MIT Digital Currency Initiative Director pointed out the fact that bitcoin is very volatile and does not possess stability. Recently the value of bitcoin dropped around 40%. 

While further talking to her counterparts, Warren linked cryptocurrencies to wild cat notes in the past. She while giving her opinion had contrasted with Sen. Cynthia Lummis (R-Wyo). She is a pro bitcoin lawmaker who launched a financial innovation caucus last month. 

Lummis gave the example of El Salvador welcoming bitcoin and making it legal in the nation, and believes that the U.S. should also work upon a structure where it will make cryptocurrency a legal tender in the country. 

Further stressing upon the environmental cost, Warren said that bitcoin and other proof-of-work cryptocurrencies draw as much energy as The Netherlands absorbs or every other data centre on this earth. 

Large corporations, corporates, online retailing etc are using digital currency and it may emerge as a legitimate part of the mainstream payments. 

China looking forward to CBDC

Even China is also eager to use its digital currency. A digital dollar may help the U.S. keep pace with China, but China has been working both on its blockchain based services network and a CBDC, digital Yuan. 

The digital Yuan will be combined with its blockchain technology and its future markets. 

CBDC is a way forward

While considering the option of Bitcoin, CBDC is another option that is much more affordable and not at all volatile. Narula, Lev Menand from Columbia Law University, Darrell Duffie from Stanford University and Chris Giancarlo, Director of Digital Dollar Foundation argued that a well-built digital dollar would be useful for the U.S. 

Sen. Sherrod Brown (D-Ohio), also expressed his opinion on the Fed issued CBDC. He said it would complement a no-fee bank account plan. Talking about the probability of the CBDC, Brown said that Americans should not have to pay exorbitant fees just to use the money they have already earned. CBDC currency is useful for working families to have access to the payment system and full participation in the economy. 

There are varied types of arguments in favor of CBDCs. Menand said they could allow big companies to find new ways of storing value. He further said that the U.S. financial system will be stabilized by offering non-defaultable money with no maximum amount. It will be very beneficial for the big companies to hold very large cash balances in non-defaultable amounts. 

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