US Senator Elizabeth Warren has argued that cryptocurrency is not a path to financial inclusion as claimed by crypto advocates. “Bitcoin ownership is even more concentrated in the top 1% than dollars,” she said, emphasizing the need for “real solutions to make the financial system work for everyone, not just the rich”.
Senator Elizabeth Warren on crypto and bitcoin
US Senator Elizabeth Warren (D-Mass.) Spoke on Tuesday about cryptocurrency, Bitcoin and financial inclusion. She tweeted:
The crypto industry claims that crypto is the path to financial inclusion, but Bitcoin ownership is even more concentrated in the top 1% than dollars. We need real solutions to make the financial system work for everyone, not just the rich.
Your comment was a response to a article in the Wall Street Journal claims that the top 1% of Bitcoin holders “control a greater proportion of cryptocurrency than the wealthiest American households in dollars.” Citing a study by the National Bureau of Economic Research, the author wrote that “the top 10,000 Bitcoin accounts hold 5 million bitcoins, which is about $ 232 billion.”
Many Twitter users responded to Senator Warren’s tweet. A user told the Massachusetts Senator, “This is not true. The fixed bitcoin supply means that ownership becomes less concentrated over time in accordance with acceptance, usage and value creation. There is no other alternative to solving the problem of money printing, which leads to an invisible tax for the average person. “
Another user tweeted the Senator, “Your reasoning is flawed. So I’m assuming that you don’t get it BTC is not “all crypto” – it is BTC. You just know BTC as ‘crypto’ while ignoring an entire burgeoning ‘crypto industry’ based on transferring values for fractions of a penny.
Additionally, some people reminded Senator Warren that crypto is decentralized and intended for everyone, not just the rich. Some questioned the claims made in the Wall Street Journal article. Several people called the Massachusetts senator “ignorant” and “manipulative” and stressed the need for education.
The Senator recently urged regulators, “clamp“On stablecoins and decentralized financial platforms (defi)“ before it’s too late ”. She said: “Defi is the most dangerous part of the crypto world.” In July, she asked the US Treasury Secretary to Janet Yellen urgently adopt a policy to mitigate crypto risks.
In September she has pressed the Securities and Exchange Commission (SEC) to address the issue of crypto exchange failures and high transaction fees. At the time, she also emphasized that cryptocurrency is not a path to financial inclusion.
What do you think of Senator Elizabeth Warren’s comments? Let us know in the comment section below.
Photo credits: Shutterstock, Pixabay, Wiki Commons
Source: Crypto News Austria