Dogecoin and Bitcoin under fire
Senator Elizabeth Warren, a candidate for the Democratic nomination during the 2020 presidential election, criticized cryptocurrencies during a recent Senate hearing.
The chair of the Subcommittee asked the legislators to address the problems with the digital property directly.
Although Warren suggested that crypto transactions could be more efficient, only regulated digital public money should be accepted.
During the Senate hearing on the central bank’s digital currencies on June 9, Bitcoin and Dogecoin were in the spotlight while US Senator Elizabeth Warren criticized cryptocurrencies for their role in fraud, ransomware attacks, and pollution.
U.S. Senator Elizabeth Warren called on lawmakers to deal directly with the problems with cryptocurrencies because the adoption of digital funds is on the rise.
A prominent Wall Street critic and consumer advocate said the government needs to address many issues related to the new property class.
Warren’s subcommittee chair attacked Bitcoin because the cryptocurrency was involved in recent high-profile ransomware attacks, including those against Colonial Pipeline and meat producer JBS. The senator commented: that any hacking that successfully pays off with cryptocurrency becomes an advertisement for more and more hackers trying to carry out cyber attacks. Warren believes that cryptocurrencies are the fourth alternative to real currency because they believe they are a “bad way” to conduct transactions and a safe haven for illegal activities.
Citing the recent rise in Dogecoin prices, which increased the value of DOGE ten times before falling by over 60%, Democrats said: It may work for speculators and investors entering cryptocurrencies that fly overnight, but not for ordinary people who they look for a regular source of value to get money and use it for everyday consumption.
The senator also pointed out controversial claims about Bitcoin energy use for mining, claiming that the process consumes more energy than the Netherlands. She added that mining has very devastating consequences for the climate. Warren is open to the idea of a digital currency of the central bank, which is supported by the American government, and which is subject to regulation. Legal digital public money could help expel counterfeit digital private money, the senator said.