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Senator Elizabeth Warren Discusses Pros & Cons Of Cryptocurrencies

Senator Elizabeth Warren

The concept of cryptocurrency has always dragged interest among the people ever since the inception of Bitcoin on 3rd January 2009. Till now they have been familiar with the use of fiat currencies in dealing with finance. But the emergence of Bitcoin brought a new revolution in the economic world. However, it got mixed responses from the countries and experts. U.S. Senator Elizabeth Warren is an example. 

She has been a Bitcoin enthusiast for a long time and has currently put forth her opinion on the advantages of cryptocurrencies. She pointed out the major advantage of the use of digital currencies, which is the growth of democratization in acquiring monetary structure. However, she also warned that if negative results are coming from the side of this digital money technology, then it would breed the need for a federal bailout. 

Senator Elizabeth Warren Emphasizing Upon Merits & Demerits of Cryptocurrencies

During an interview, Senator Elizabeth Warren was asked about the matter on cryptocurrency regulation in the United States. To this, she replied if people want to initiate trading of cryptocurrencies, then they can, but there must be a cop to look over it. According to her, due to his absence, the small traders will be cheated continuously, and this is the main concern that bothers her. 

The Massachusetts-based senator has also said that what she meant to say is there must be some rules to be applied on cryptocurrency trading to give satisfactory confidence to those who are dealing in it. And for that, the presence of a cop will do the needful as a whistleblower by spotting the scams, and timely intercepting them. 

After that, U.S. Senator Elizabeth Warren was asked about her take on the merits and demerits of cryptocurrencies. To which she responded by first emphasizing the merits. She said that the biggest advantage of cryptocurrency is the increase in democratization or reaching up to the financial system. 

Currently, in the U.S, there are around 10 million people which are either unbanked or underbanked. All it means they have to look over for cashers to make payment of their paycheck at 3% to receive their cash. People falling into these categories have to do a money payment regarding the payment on their use, or payment for paying rent which costs much, as said by the Senator. 

Elizabeth further said that if we go along with cryptocurrency structure or expansion, it will lead to more participation of people, and there are multiple ways to be framed. Coming on to the demerits of cryptocurrency, the Senator pointed towards the non-regulatory structure. According to her, getting more people to get cheated is something she does not wish to happen. 

She also warned that with the ballooning of the cryptocurrency market, the more it will remain exterior to financial structure. And this indeed will once again lead to another situation of the monetary clampdown, like the one that happened in 2008. Senator Elizabeth Warren also warned that if something odd happens, the crypto will run. If there is any serious issue taking place elsewhere in the economy, she does not want taxpayers in the United States to be called for backup. 

Response To Senator Elizabeth Warren Comment On Crypto Run

In response to the comment on crypto run by U.S. Senator Elizabeth Warren, many people came up to their social media page on Twitter. Some criticized her for having the approach of a banker, and crypto is not akin to the stock market, where bankers approach the government for a bailout, after experiencing a crash. According to Paul Puey, the CEO of Edge, it is not possible to expect a crypto bailout. There is no need to have it.  

Have Been Bitcoin Skeptic

Even though Senator Elizabeth Warren has been a supporter of Bitcoin cryptocurrency, still, she was critical to the latter digital money system in terms of environmental effect and safety of investors. Besides this, she also accepted the fact about the misuse of cryptocurrency for illegal financial means, as earlier said by Janet Yellen, the Treasury Secretary of the United States. 

Becoming Desperate For Crypto Regulation

At present, U.S. Senator Elizabeth is putting pressure on the implementation of crypto regulation. She has requested Janet Yellen to come up with a policy for alleviating the risks of cryptocurrencies as soon as possible. Other than Janet, she requested Gary Gensler, the chairman of the U.S. SEC to also take initiative for the same objective and to take full control in regulating the crypto trading. 

Final Words

So this is all about the approach of U.S. Senator Elizabeth Warren towards cryptocurrency. Even though she has been a Bitcoin skeptic, still, she is concerned for the investors’ protection and wants to pressure the matter of alleviating cryptocurrency risks. For that, she has requested the Treasury Secretary of the United States, Janet Yellen, and U.S. SEC chairman Gary Gensler to implement the crypto regulations. Elizabeth is well aware of the pros and cons of cryptocurrency use. Explore more other topics like Charlie Noyes net worth and more others.