U.S. Senator Elizabeth Warren compared cryptocurrency to the mortgage crisis
The Senator believes that the increase in the value of digital assets is driven only by people's trust in the technology. She also called on the authorities to accelerate the development of a central bank digital currency so as to prevent a crisis.
According to CoinDesk, when asked whether she sees cryptocurrencies as a new financial bubble, the Senator replied, “The whole digital world has worked very much like a bubble works. What is it moved up on? It's moved up on the fact that people all tell each other that it's going to be great, just again like it was on that real estate market. How many times did people say, 'Real Estate always goes up. It never goes down?' They said it decades ago before the last real estate bubble. They said it in the 2000s, before the crash in 2008.”
In her opinion, Bitcoin will also be regulated by the state, although she doesn't yet know what regulations will be applied to it.
Recall that Elizabeth Warren announced a new bill that would prohibit cryptocurrency companies from dealing with businesses that have fallen under U.S. sanctions. If companies try to cooperate with them, they will end up under sanctions themselves. In fact, the crypto community criticized the bill, and according to some analysts, it targets some dominant players, such as Binance, owned by a Chinese businessman.
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