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US Senator on Crypto: We need real solutions to make the financial system work for everyone, not just the wealthy

U.S. U.S. Senator Elizabeth Warren stated that cryptocurrency is not a pathway to financial inclusion as crypto advocates claim. She stated that Bitcoin ownership is more concentrated in the top 1% than dollars, and stressed the need for “real solutions to make financial systems work for all people, not just the wealthy.”

Senator Elizabeth Warren discusses Crypto and Bitcoin
U.S. U.S. Senator Elizabeth Warren (D.Mass. Tuesday’s comments were about bitcoin, cryptocurrency and financial inclusion. She tweeted:

Although the crypto industry claims crypto is the way to financial inclusion, bitcoin ownership is more concentrated in the top 1% than dollars. Real solutions are needed to make the financial system work, and not just for the wealthy.

Her comment was made in response to an article in Wall Street Journal that claimed that the top 1% of bitcoin owners “control more cryptocurrency than most American households control in dollars.” The author cited a study done by the National Bureau of Economic Research and stated that 5 million bitcoins are held by top 10,000 accounts, which is roughly $232 trillion.

Many Twitter users responded to Senator Warren’s tweet. One user said to Senator Warren, “This is false.” Fixed bitcoin supply means that ownership becomes less concentrated over time, in line with adoption, use and creation of value. There is no alternative to the problem of money printing, which results in an invisible tax for the average citizen.

Another user sent a tweet to senator: “Your argument was flawed. Therefore, I assume that you don’t know BTC. It’s BTC. While you are only recognizing BTC is ‘crypto,’ you ignore an entire budding crypto industry that relies on the transfer value for fractions a penny.

Some people also reminded Senator Warren that crypto is distributed and accessible to all, not just the wealthy. Many people questioned the Wall Street Journal article’s claims. Many people called Senator from Massachusetts “ignorant”, “manipulative” and stressed the importance of education.

Recently, the senator called for regulators to “clampdown” on decentralized finance platforms (defi) and stablecoins.

She pressed the Securities and Exchange Commission to address the issue of high transaction fees and crypto exchange outages in September. She stressed that cryptocurrency was not a pathway to financial inclusion.

This story contains tags

Bitcoin, Bitcoin concentration. Decentralization, DeFi Elizabeth Warren. Financial inclusion, financial system. real solutions. Stablecoins. US Senator Warren

What did you think of Senator Elizabeth Warren’s comments about the issue? Comment below to let us know your thoughts about Senator Elizabeth Warren’s comments.

Kevin Helms

Kevin, a student of Austrian Economics and evangelist since then. His interests include Bitcoin security, open source systems, network effects, and the intersection of cryptography and economics.

Image Credits: Shutterstock. Pixabay. Wiki Commons.

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Henry Hicks
Henry Hickshttps://nonfungibletalk.com
NFT and Crypto Enthusiast. Loves Travelling and Exploring the Metaverse!
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