U.S. Senator Sherrod Brown says cryptocurrencies are not real dollars and they “put Americans’ hard-earned money at risk.” Referring to decentralized finance (defi) as “a shady, diffuse network of online funny money,” he said, “if we want a solution to Americans’ legitimate fears about our banking system, shady start-ups are not the answer.”

Senator Brown’s Warning About Cryptocurrencies

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Stating that thousands of digital assets, including stablecoins and investment tokens have flooded the markets since the introduction of bitcoin, the Ohio senator said:

All of these currencies have one thing in common – they’re not real dollars, they’re not backed by the full faith and credit of the United States. All of these currencies put Americans’ hard-earned dollars at risk.

” From tech giants such as Facebook’s Libra or Diem… to fly-by night operations, we have seen far more empty claims than we have seen viable cryptocurrency,” he said.

The senator also spoke out about decentralized finance. He stated that defi programs aim to create “a parallel system of finance with no rules, oversight and no limits .”

Citing that “They claim they can enable transparency” and “Their backers speak about the “democratization of banking”, Brown exclaimed:

There’s nothing ‘democratic’ or ‘transparent’ about a shady, diffuse network of online funny money.

However, he admitted that people don’t trust banks or the banking system. He said that shady start ups were not the solution to Americans legitimate concerns about the system .”

What do you think about the comments by Senator Brown? Comment below.

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