Senator Warren told CNBC that cryptocurrencies and central bank digital currencies “may be an answer” to the “enormous failure by the big banks to reach customers”.
She said, “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”. Warren said cryptocurrencies’ “extremely low transaction costs” could make it easy for 15 million Americans who don’t have bank accounts.
The comments from Warren were surprising as she is a critic of cryptocurrency. She also wrote a letter to Secretary Janet Yellen calling for faster regulations.
Senator Warren Doesn’t Want to Wait Until Small Traders get Wiped out
Senator Warren has continued her quest for demanding regulators for quick action around crypto regulations. This year has seen a high crypto adoption drive from financial giants, institutional investors, and retail traders alike. Moreover, Warren had said that small investors are one that suffers because of a lack of regulations. She said she doesn’t want to wait until a whole lot of small traders and investors get wiped out.
“I don’t 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.”
“I think the question is not just regulation. The question is how it’s aimed. Who takes advantage of there being no rules? It’s the big guys. Who wins when there’s no cop on the beat? It’s the big guys,” she added. “That’s the part that I care about and I care about it happening before a lot of people have been wiped out.”
She pushed back on concerns that increased regulation would stifle innovation for still-emerging digital assets and blockchain technology.
“I want people to have freedom to invest. I just don’t want a system where the big guys, where the shadows guys, where the guys you never quite see, can get out there and do pump-and-dump [schemes],” Warren said.
