‘There is no legitimate use case for crypto’ — US Representative Stephen Lynch

US Democratic lawmakers characterized crypto as an outright “scam” in a Wednesday press conference, pushing for the development and rollout of a central bank digital currency (CBDC).

Representative Maxine Waters called the CBDC Anti-Surveillance State Act, a bill that would prohibit the creation of a government-controlled digital dollar, the “anti-innovation act.” The anti-CBDC bill and the GENIUS stablecoin bill “endanger our national security,” Waters said.

Representative Stephen Lynch, who also attended press event, said crypto had no legitimate use case:

“As a committee, we've learned that there is no legitimate use case for cryptocurrency, as of yet, unless you count the illegal practices of every single ransomware heist that has affected US businesses, which have been fueled and facilitated by cryptocurrency.

“It's a highly risky and volatile product that has no business in a functioning and well-regulated financial system. This entire industry is a scam,” he said.

US President Donald Trump signed an executive order banning CBDCs in January.

Democratic lawmakers hold a press conference pushing for CBDCs. Source: House Financial Services Committee
Related: South Korea pauses CBDC tests as stablecoin fever hits banks

Countries remain divided on CBDCs

In February, Federal Reserve Chair Jerome Powell testified at a Senate hearing that the central bank would not develop a CBDC under his tenure

Other countries are moving ahead with the digitization of their fiat currencies, often citing a need to make their currencies competitive in the digital age, while also maintaining sovereign control of the currency and not entrusting issuance to a third-party stablecoin company.

Most Americans either oppose the adoption of a CBDC or are currently undecided. Source: Cato InstituteThe Reserve Bank of India, the country’s central bank, announced it would expand its CBDC test trials in May to focus on novel use cases for its digital rupee.

In July, Australia’s central bank tipped plans to test wholesale CBDCs in a closed experiment with select institutions.

Bank of England Governor Andrew Bailey recently said that the UK’s central bank should not issue a CBDC, arguing that it could destabilize the banking system. Bailey added that the Bank of England should focus on tokenizing deposits instead.

Magazine: India mulls new crypto ban to support CBDC, Lazarus Group strikes again: Asia Express

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