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During the recent talk at CNBC’s Squawk Box episode, US Senator Elizabeth Warren, who is a member of the Senate Banking Committee, discussed crypto and the ways of healthy regulation of it.
The conversation also touched the wealth tax when it comes to taxing wealth earned on cryptocurrencies.
“CBDCs can help millions of unbanked people”
When asked by an anchor Andrew Sorkin whether crypto is able to disrupt the modern financial system in a positive way, Warren stated that digital currencies are interesting here, central bank digital currencies (CBDCs) in particular.
CBDCs may come in handy when it comes to the issue of millions of people who are either unbanked or underbanked. Warren has called this “an enormous failure by the big banks” as they are unable to reach consumers all across the US and provide them with their services properly.
So, digital currencies could be an answer here, she said.
"One of the things I think is very interesting is digital currency," says @ewarren. "There has been an enormous failure by the big banks to reach consumers all across the country...digital currency and central bank digital currency may be an answer there." pic.twitter.com/sCVum1GGe2
— Squawk Box (@SquawkCNBC) July 28, 2021
Further on, she admitted the presence of numerous problems in the global financial system right now, in the US in particular. The question of adopting and regulating crypto, according to the Senator, is to find ways to improve the design of crypto for the benefit of the system and to prevent new risks that cryptocurrencies may “contribute” to it.
Wealth tax on crypto
When asked about whether the wealth tax that Warren is touting at the moment should be paid by those who have made a fortune on crypto and if it should be made in a different fashion to those who have got rich on real estate or other traditional assets, the Senator said that it does not matter.
The wealth tax, she emphasized, should be collected on wealth regardless of what assets it is stored in –real estate, Amazon shares, or cryptocurrencies.
"I want to see us tax wealth, however your wealth is tied up it shouldn't make a difference," says @SenWarren on a wealth tax for #crypto. "Whatever form you have your assets ... I think there ought to be a tax on that annually." pic.twitter.com/jXUBFCf13O
— Squawk Box (@SquawkCNBC) July 28, 2021
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