U.S. Senator Elizabeth Warren has argued that cryptocurrency is not a path to financial inclusion as crypto advocates claim. “Bitcoin ownership is even more concentrated in the richest 1% than dollars,” she said, stressing the need for “real solutions to make the financial system work for everyone, not just the dollars. rich”.
Senator Elizabeth Warren on Crypto and Bitcoin
U.S. Senator Elizabeth Warren (D-Mass.) Commented on cryptocurrency, bitcoin and financial inclusion on Tuesday. 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 the dollar. We need real solutions to make the financial system work for everyone, not just the rich.
His comment followed a Wall Street Journal article claiming that the 1% of bitcoin holders “control a greater share of cryptocurrency than US dollar-rich households.” Citing a study from the National Bureau of Economic Research, the author wrote that “the top 10,000 bitcoin accounts hold 5 million bitcoins, which is the equivalent of approximately $ 232 billion.”
Many Twitter users responded to Senator Warren’s tweet. One user told the Massachusetts senator: “This is not true. The fixed supply of bitcoin means that ownership becomes less concentrated over time based on adoption, use, and value creation. There is no other alternative but to solve the problem of printing money which results in an invisible tax on the average citizen. “
Another user tweeted to the senator, “Your argument is wrong. So I’m guessing you don’t understand that BTC isn’t “all crypto” – it’s BTC. You only recognize BTC as ‘crypto’ while ignoring an entire nascent ‘crypto industry’ based on transferring value for fractions of a dime.
Additionally, some people reminded Senator Warren that crypto is decentralized and is for everyone, not just the rich. Some have questioned the claims made in the Wall Street Journal article. Several people called the Massachusetts senator “ignorant” and “manipulative”, stressing the need for education.
The senator recently called on regulators to “crack down” on stablecoins and decentralized finance (challenge) platforms “before it is too late”. She said: “Defi is the most dangerous part of the crypto world.” In July, she urged U.S. Treasury Secretary Janet Yellen to urgently adopt a policy to mitigate crypto risks.
In September, she urged the Securities and Exchange Commission (SEC) to resolve the issue of crypto exchange outages and high transaction fees. She also pointed out at the time that cryptocurrency is not a path to financial inclusion.
What do you think of Senator Elizabeth Warren’s comments? Let us know in the comments section below.
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