U.S. Senator Sherrod Brown stated that cryptocurrencies are not real U.S. dollars. They “put Americans’ hard-earned money at risk”. He referred to decentralized finance (defi) as “a shady, decentralized, interesting online currency network.” “If we want to address the legitimate concerns Americans have about our banking system, then shady startups are not the answer.”
Senator Brown’s warning about cryptocurrencies
U.S. Senator Sherrod Brown, chairman of the Banking, Housing and Urban Affairs Committee of the U.S. Senate, raised concerns about cryptocurrencies in his opening speech at the hearing on Tuesday, entitled “Cryptocurrencies: What are they good for?”
The senator from Ohio stated that since Bitcoin went live, thousands of digital assets, namely cryptocurrencies, stablecoins and investment tokens, have flooded the market:
All these currencies have one thing in common-they are not real dollars, and they are not supported by the full trust and credit of the United States. This means that they all put the hard-earned money of Americans at risk.
“From tech giants like Facebook’s Libra or Diem to night operations, we see much more short promises than we see viable cryptocurrencies,” he added.
The senator also commented on decentralized finance, saying that the defi plan hopes to create “a parallel financial system without rules, supervision, and restrictions.”
Quoting “they claim to achieve’transparency'” and “their supporters talk about the’democratization of banking'”, Brown exclaimed:
There is nothing “democratic” or “transparent” in a shady, decentralized online funny currency network.
Nonetheless, he admitted that some people do not trust banks and the banking system; they “see these technologies as a way to regain power from Wall Street bankers.” However, he said, “If we want to solve Americans’ Systematic reasonable concerns, so dark start-ups are not the answer.”
What do you think of Senator Brown’s comments? Let us know in the comments section below.
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