Sen. Warren Claims CBDCs Can Help Solve the Massive Failure of Big Banks

Senator Elizabeth Warren has reiterated her support for the CBDCs and believes they can help solve the massive failure of big banks in the United States.

CBDCs Can Help Solve The Massive Failure Of Big Banks

When questioned by anchor Andrew Sorkin if crypto would be able to positively upset the contemporary financial system, Warren said that digital currencies are fascinating, and central bank digital currencies (CBDCs) in particular are interesting.

CBDCs may be useful for millions of individuals who are unbanked or underbanked. Warren referred to this as “the massive failure of big banks” since they are unable to contact people across the United States and provide banking services to them.

As a result, she believes that digital currencies might be an option in this case.

“One of the things I think is very interesting is digital currency,” says @ewarren. “There has been an enormous failure by the big banks to reach consumers all across the country…digital currency and central bank digital currency may be an answer there.” pic.twitter.com/sCVum1GGe2

— Squawk Box (@SquawkCNBC) July 28, 2021

Later, she recognized that there are significant difficulties in the global financial system right now, particularly in the United States. 

According to Warren, to increase crypto acceptance and regulation, the sector must discover methods to improve the crypto structure to benefit the system and prevent new dangers that cryptocurrencies may “add” to it.

Crypto-Wealth Tax

When asked if Warren’s wealth tax is currently advocating should be paid by people who have earned a fortune in crypto, and if it should be collected differently from those who have made a fortune in real estate or other traditional assets, the senator answered it doesn’t matter.

She underlined that the wealth tax should be levied on wealth regardless of where it is held: real estate, Amazon shares, or cryptocurrency.

“I want to see us tax wealth, however your wealth is tied up it shouldn’t make a difference,” says @SenWarren on a wealth tax for #crypto. “Whatever form you have your assets … I think there ought to be a tax on that annually.” pic.twitter.com/jXUBFCf13O

— Squawk Box (@SquawkCNBC) July 28, 2021

Garlinghouse and Novogratz Respond to Warren’s Plea for Cryptocurrency Regulation

Elizabeth Warren’s most recent effort to tighten down on cryptocurrencies has been met with harsh criticism from the cryptocurrency community.

Galaxy Digital CEO Mike Novogratz stated that the Massachusetts senator’s anti-crypto remarks made her appear “not very progressive” to him.

During a Senate Banking Committee hearing on July 27, Warren labeled the business as “shadowy” and “faceless”:

“Instead of entrusting our financial system to the whims of large banks, crypto leaves it to the whims of a mysterious faceless bunch of super programmers and miners, which does not seem any better to me.”

Ripple CEO Brad Garlinghouse saw the good side of things, noting the progress politicians have made in understanding cryptocurrency.

As previously reported, Warren also wrote to Treasury Secretary Janet Yellen, urging her to address the various concerns posed by stablecoins and decentralized financing.