© Reuters. FILE PHOTO: U.S. Senator Elizabeth Warren speaks during a Senate Finance Committee hearing on the IRS budget proposal on Capitol Hill in Washington, USA, June 8, 2021. REUTERS / Evelyn Hockstein / Pool By Pete Schroeder WASHINGTON (Reuters) – U.S. Senator Elizabeth Warren on Wednesday urged US politicians to directly address issues arising from the increased use of cryptocurrencies, while also saying that a Federal Reserve-backed digital currency was “big promise”. Democrat Warren, a prominent Wall Street critic and consumer advocate, said the cryptocurrency’s promise to empower Americans’ everyday lives had not come true and instead the government must act to address a myriad of issues. “Cryptocurrency has created opportunities to scam investors, help criminals and make the climate crisis worse,” she said at a congressional hearing. “The threats posted by crypto show that Congress and federal regulators cannot hide further in the hope that crypto will go away. It will not. It is time to face these issues head on.” Warren endorsed the Federal Reserve’s deliberations on a digital dollar, saying that if properly designed it could empower poorer Americans and streamline the payment system. Republicans, however, adopted a much more cautious tone, asking if such a Fed-backed product is even necessary and what it could mean for the traditional banking system. “We don’t need a government-sponsored bank to interfere with this successful free enterprise system,” said Senator Pat Toomey, who instead pushed for continued growth in private digital currencies. The Senate Banking Committee hearing marked one of the most focused debates in Congress on the implications of a Fed-backed digital currency. The central bank has announced that it will be investigating the issue as global counterparties, led by China, take steps to establish their own digital currencies. The Washington debate is significant because Fed Chairman Jerome Powell has said the central bank will not proceed with a digital currency without the support of Congress. Disclaimer: Fusion Media advises you that the information contained on this website is not necessarily real or accurate. All CFDs (stocks, indices, futures) and forex prices are not provided by exchanges, but by market makers. Therefore, prices may not be accurate and may differ from the actual market price, which means that prices are indicative and not suitable for trading purposes. Therefore, Fusion Media is not responsible for any trading loss you may incur as a result of the use of this data, and Fusion Media or anyone involved in Fusion Media is not responsible for any loss or damage resulting from reliance on the information, including data, prices, Charts and buy / sell signals included on this website. Please inform yourself comprehensively about the risks and costs associated with trading in the financial markets, as this is one of the riskiest forms of investment.