Democratic Senator Elizabeth Warren did not mince words when it came to criticizing crypto, but seemed to consider a federally-backed digital currency as a possible solution to address problems around financial inclusion in the United States.
At a Wednesday session of the Senate Banking Committee discussing a U.S. government-backed central bank digital currency, or CBDC, Warren said the recent explosion in cryptocurrencies had helped many people understand the foundational technology on which digital currencies were based. However, she called crypto a “fourth rate alternative to real currency.”
“Digital currency from central banks has great promise,” said Warren. “Legitimate digital public money could help drive out bogus digital private money.”
Discussing what she labeled as “bogus” currency, Warren cited Dogecoin (DOGE) as an example of many cryptocurrencies’ volatility making them unsuitable as a medium of exchange in her opinion. She called out pump and dump schemes and other apparent efforts to manipulate the prices of certain tokens.
“Crypto is a lousy investment,” said