U.S. Senator Sherrod Brown says cryptocurrencies are not real
dollars and they “put Americans’ hard-earned money at risk.” Referring
to decentralized finance (defi) as “a shady, diffuse network of online
funny money,” he said, “if we want a solution to Americans’ legitimate
fears about our banking system, shady start-ups are not the answer.”
Senator Brown’s Warning About Cryptocurrencies
U.S. Senator Sherrod Brown, Chairman of the U.S. Senate Committee on
Banking, Housing, and Urban Affairs, raised concerns about
cryptocurrency in his opening statement at Tuesday’s hearing titled
“Cryptocurrencies: What are they good for?”
Stating that thousands of digital assets, namely cryptocurrencies,
stablecoins, and investment tokens, have poured into the markets since
bitcoin came online, the senator from Ohio said:
All of these currencies have one thing in common –
they’re not real dollars, they’re not backed by the full faith and
credit of the United States. And that means they all put Americans’
hard-earned money at risk.
“From tech giants like Facebook’s Libra – or Diem … to fly-by-night
operations, we’ve seen far more empty promises than we’ve seen viable
cryptocurrencies,” he added.
The senator also commented about decentralized finance, stating that
defi schemes hope to create “a parallel financial system with no rules,
no oversight, and no limits.”
Citing that “They claim to enable ‘transparency'” and “Their backers
talk about the ‘democratization of banking,'” Brown exclaimed:
There’s nothing ‘democratic’ or ‘transparent’ about a shady, diffuse network of online funny money.
Nonetheless, he acknowledged that some people do not trust banks and
the banking system; they “see these technologies as a way to take power
back from the Wall Street bankers.” However, he said, “if we want a
solution to Americans’ legitimate fears about our banking system, shady
start-ups are not the answer.”
source link : https://news.bitcoin.com/us-senator-says-cryptocurrencies-put-americans-hard-earned-money-at-risk/
