US Senator Sherrod Brown says cryptocurrencies are not real dollars and “put Americans’ hard-earned money at risk.” Referring to decentralized finance (defi) as “a seedy, diffuse network of funny online money,” he said, “if we’re looking for a solution to Americans’ legitimate fears about our banking system, seedy startups are not the solution. “
Warning from Senator Brown about cryptocurrencies
Senator Sherrod Brown, chairman of the Senate Committee on Banking, Housing and Urban Affairs, raised concerns about cryptocurrency in his opening address at Tuesday’s hearing titled “Cryptocurrencies: What Are They Good For?”
The Ohio Senator said thousands of digital assets, namely cryptocurrencies, stablecoins, and investment tokens, have poured into the markets since Bitcoin went online:
All of these currencies have one thing in common – they are not real dollars, they are not backed by the full trust and creditworthiness of the United States. And that means they are all putting America’s hard-earned money at risk.
“From tech giants like Facebook’s Libra – or Diem … to nightly operations – we’ve seen far more empty promises than viable cryptocurrencies,” he added.
The Senator also commented on decentralized funding, stating that Defi programs hope to create “a parallel financial system with no rules, no oversight and no borders.”
Citing “You claim to enable ‘transparency'” and “Your supporters speak of the ‘democratization of banking'”, Brown exclaimed:
There is nothing “democratic” or “transparent” about a seedy, diffuse web of funny online money.
Still, he acknowledged that some people don’t trust banks and the banking system; they “see these technologies as a way of taking power back to Wall Street bankers.” However, he said, “If we want a solution to Americans’ legitimate fears of our banking system, seedy startups are not the solution.”
What do you think of Senator Brown’s comments? Let us know in the comment section below.
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