Warren favors the use of cryptocurrencies and CBDCs, as these could help solve the problems of large banks. The senator believes that there should be strict regulations on these assets to protect users from fraudulent actors.
Elizabeth Warren, a Democratic senator, and former US presidential candidate is a member of the Senate Banking Committee. The official commented again on cryptocurrencies and central bank digital currencies (CBDC).
In recent days, the popular senator argued that there are currently many problems in the US financial system. She said that one of them was the big banks that control and put a large part of the economy at risk.
She recommended looking at the design of cryptocurrencies to find a way to make it better and see where it presents risks to the system.
Warren Believes that CBDCs Can Help Against Bank Failures
When asked whether cryptocurrencies could positively disrupt the modern financial system, Warren replied that she is interested in them. She highlighted that central bank digital currencies attract her in a particular way.
The US senator believes that large banks have failed to reach all consumers in the country. Furthermore, she believes that CBDCs may represent a solution to that problem.
Warren said that CBDCs could be helpful as millions of people do not have access to banking services. For that reason, she called this an evident failure of big banks. She stated that they could not reach all consumers in the country, particularly the unbanked, to provide them with banking services.
In this regard, Maya Zehavi, an Israeli Bitcoin expert, said that she agrees with the philosophy of Senator Elizabeth Warren. However, she noted that Warren does not see how current CBDC designs cement the TBTF stampedes on innovation and competition.
Elizabeth Warren Speaks About Regulating Cryptocurrencies
Warren expressed that she did not want to wait to see the destruction of many people, many small investors, and many small traders.
The former presidential candidate wonders who takes advantage of the fact that there are no rules about cryptocurrencies. She also does not know who wins when the police do not do checking to detect illegal activities. She believes that there should be regulations on these types of assets.
The official sent a letter to Treasury Secretary Janet Yellen requesting stricter regulation on cryptocurrencies. She asked her to appeal to the Financial Stability Supervisory Board to act urgently in that case.
She believes that it is not advisable to wait any longer for the United States to adopt an appropriate regulatory regime for these assets. In that regard, she said that cryptocurrencies would become so intertwined in the financial system that there could be potentially serious consequences.
Warren Considers that Cryptocurrencies Should Pay Taxes
Regarding taxes, Warren believes that there should be no difference regardless of where the capital is. For that reason, she considers that cryptocurrencies should not be tax-exempt.
She emphasizes that there should be an annual tax on any form of assets. According to the senator, real estate, money, stocks, diamonds, yachts, and cryptocurrencies, among others, should pay taxes.
By Alexander Salazar
