Senator Warren says banks have “done a really bad job”, advocating CBDCs instead of Bitcoin

US lawmaker Senator Elizabeth Warren admitted that banks “have done a really bad job” while advocating for central bank digital currencies (CBDCs) because the government supports them.

In a March 31 NBC Meet the Press interview, Warren highlighted several problems in the banking industry – including high transaction fees, lack of speed and lack of transparency.

Warren advocates CBDC against Bitcoin

However, she believes the problems in the banking industry would be solved with a CBDC and not Bitcoin (BTC).

According to her, CBDCs are government-backed digital transfers that can be denominated in national fiat currencies – while Bitcoin is a “volatile token” with no value.

Warren noted that Bitcoin has nothing backing it except the belief in its value by those who buy it. She added that the asset differs from platinum or silver because they enjoy some form of backing.

Warren also disagreed about BTC’s comparison to a work of art. She said the artwork is physically on the wall, and “I can enjoy it, or I can throw darts at it.”

On stablecoins, she noted that this asset class looks like CBDCs, but it is not the same because one cannot determine whether they are backed by anything. “The problem with these is whether there are any dollars to back it up, gold or government promises,” she added.

Warren’s Anti-Crypto Stance

Warren’s recent statements are reminiscent of her previous views on crypto. The senator has criticized the crypto industry several times, pointing out its energy consumption and its use by criminals.

She recently announced her re-election campaign, built in part on the promise of creating an “anti-crypto army.” To achieve this, the senator wants to recruit conservative Republicans, bankers, regulators and watchdog groups.

There are also reports that the senator is working with US Securities and Exchange Commission (SEC) Chairman Gary Gensler. Heritage Foundation shared evidence of coordination between Warren’s office and SEC officials prior to Gensler’s appearance before Warren’s committee in 2021.