During the June 9 Senate hearing on central bank digital currencies, Bitcoin and Dogecoin were put in the spotlight by United States Senator Elizabeth Warren, who criticized cryptocurrencies for their role in scams, ransomware attacks and pollution of the planet.
The US legislator makes one of the harshest criticisms ever made of cryptocurrencies
US Senator Elizabeth Warren has called on lawmakers to address cryptocurrency issues "head on" as digital asset adoption is on the rise.
The prominent Wall Street critic and consumer advocate said the government faces a number of problems related to the new asset class.
Subcommittee chair Warren attacked Bitcoin as the cryptocurrency was involved in recent high-profile ransomware attacks, including those against the Colonial Pipeline and the JBS meat producer.
The senator said: "Any attack that is successfully paid for with a cryptocurrency becomes an advertisement for other hackers who may try other cyber attacks."
According to Warren, cryptocurrencies are a "fourth tier alternative to real currency" as he believes they are a "bad way" to conduct transactions and a "safe haven for illegal activities".
Citing the recent Dogecoin price hike, which raised DOGE's value tenfold before plunging more than 60%, the Democrat said:
"This might work for speculators and casual investors, but not for ordinary people looking for a source of regular value to get paid and use for day-to-day expenses."
Back to being talked about for environmental issues
The senator also highlighted controversial claims about Bitcoin's energy use for mining, arguing that the process consumes more energy than the Netherlands. He added that mining has "devastating consequences for the climate".
Warren concluded that Congress and federal regulators cannot continue to "hide" and that it is time to address digital asset issues head-on.
The senator was open to the idea that digital currency transfers are faster than the traditional industry. In fact, he added: "But for these advantages to be realized, the digital version must be safe, stable and accepted everywhere".
Warren is open to the idea of a US government-backed central bank digital currency (CBDC), subject to regulation. "Reliable digital public money could help chase away bogus digital private money," the senator said.
"It could help improve the financial inclusion, efficiency and security of our financial system if that digital public money is well designed and efficiently executed, which are two very big ifs."
Every day someone comes out of the hat to talk about cryptocurrencies, for better or for worse. But as a famous Italian politician said, it doesn't matter if you talk about it well or badly. The important thing is that we talk about it.
