US Senate doubts blockchain will solve financial system problems

Virtual Hearing – Monetary Policy and the State of the Economy (EventID=111208)

US Senate doubts blockchain will solve financial system problems

The US Senate Banking Committee recognizes the usefulness and potential of blockchain, but believes that technology cannot solve all the problems of the financial system.

At a hearing on cryptocurrency regulation, US lawmakers criticized claims that the technology will provide access to the financial system for people living in hard-to-reach and remote regions.

According to Senator Brian Schatz, representatives of the cryptoindustry present the blockchain as a magic wand, the wave of which solves all problems, but they forget to mention many real aspects and obstacles. In particular, he said that, despite the huge potential of the technology, it does not allow serving low-income communities, since now only 81% of the population has smartphones, which casts doubt on the democratic use of these products..

US Senate doubts blockchain will solve financial system problems

He further stated that he had no doubts about the ubiquitous use of blockchain in 20 years, but this would require solving a number of social and political issues. Therefore, it is important to know what this technology can and cannot do, since in order to form the regulatory framework, one must clearly understand the potential problems that may arise..

This hearing is a continuation of the discussion by US officials on the topic of the launch of cryptocurrency. Facebook. Recently the company even warned investors that due to such close scrutiny from regulators and politicians cannot guarantee the exit Libra.

text: Ivan Malichenko, photo: Shutterstock