US Senator says stabelcoins Investors may lose all money
Sherrod Brown said that people who invested their money in stabelcoins may lose their all funds because these stabelcoins are not regulated.
In the present time, stabelcoins are the best powerful tool to make payments in the crypto industry and almost all the crypto traders are dependent on the stabelcoins because it provides fiat like a property without going through any centralized Bank.
Speaking in US Senate’s Banking, Housing, and Urban Affairs Committee hearing, Sherrod Brown- United States Senator, raised concerns on the operations of the stablecoins.
Brown said that there are many people, who are looking for stabelcoins use as an alternative financial system and this is fully out of understanding.
“It is understandable a lot of people are looking for an alternative to our current financial system. Wall Street banks dominate this economy; they make record profits no matter what happens to workers”
Further Brown said that Stabelcoins is not an alternative to the traditional financial system. Because these stabelcoins are neither regulated like banks nor are decentralized, as what they promise.
“Stablecoins and crypto markets aren’t an alternative to our banking system. They’re a mirror of the same broken system––with even less accountability, and no rules at all.“
After the criticism of Brown against Stabelcoins, Pat Toomey- Ranking member- defended the use of stabelcoins. Toomey said that Stabelcoins rare better payment option because of the cost-efficient transactions and also payment system can be expanded with the help of stabelcoins use.
Toomey also said that Crypto can give better revolutionary results under the perfect regulation framework.
In reply to Toomey, Brown said that the crypto industry is beneficial but only to a few people or those wealthy guys, and the rest of them have walked away with a loss. Further, he continues
“Stablecoins make it easier than ever to risk real dollars on cryptocurrencies that are at best volatile, and worst outright fraudulent.“
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