Senator Elizabeth Warren who is a known crypto critic appeared on CNBC to talk about regulations around the digital asset market. During her interview she said digital currencies in a way can help where major banks have failed in all these years. Warren was talking about how digital currencies can help bank the unbanked.
“One of the things I think is very interesting is a digital currency, 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.”
The comments came as a surprise to many given her slew of statements against the crypto market and how its volatility put traders at risk. Yesterday, she also wrote to Treasury Secretary Janet Yellen, calling for speedy action from regulators to bring the growing crypto market under the umbrella of law.
Warren also said that the current US financial has its problem right now but one must look at the crypto design to see where it can be helpful to the existing financial system and also lookout for problems that it may cause.
“We have a lot of problems in our financial system right now. The question we have to ask is looking at the design of crypto to see where it may be better but also to see where it may inject its risks into the system.”
Sen.Warren's changed stance on crypto is quite puzzling to many given only 24-hours ago she had called crypto a financial network controlled by “Shadowy super coders”.
Senator Warren says dont want to wait until small traders get wiped out
Senator Warren has continued her quest for demanding regulators for quick action around crypto regulations. 2021 has seen a massive crypto adoption drive from financial giants, institutional investors, and retail traders alike. However, Warren had said that small investors are the one that suffers because of the lack of regulations. She said she doesn't want to wait until a whole lot of small traders and investors get wiped out.
“I dont want to wait until a whole lot of people, a whole lot of small investors, a whole lot of small traders have been completely wiped out,” Warren added, “Rules of the road that are there at the beginning–give people a lot of confidence.”