Joe Biden’s selection for the new US Treasury Secretary, Janet Yellen, made clear her stance on bitcoin and cryptocurrencies. This comes after her remarks during a Senate hearing when she said that cryptocurrencies are mostly used for illicit financing.
Janet Yellen explains her crypto plans
Janet Yellen outlined her position on cryptocurrency regulation in written testimony published on Thursday after a Senate hearing over her candidacy for the Treasury secretary. During the hearing, Yilin gave some Formulations Regarding cryptocurrencies, it has been severely criticized as being inaccurate.
The Finance Committee began by providing a brief description of the benefits and risks of Bitcoin and other cryptocurrencies. The written testimony reads: „Bitcoin and other digital and cryptocurrencies offer financial transactions around the world, like many technological developments, and this provides potential benefits to the United States and our allies.“ Meanwhile, it also provides opportunities for states and non-state actors looking to circumvent the existing financial system and undermine U.S. interests. For example, the Chinese central bank has just released its first digital currency. „
“Dr. Yellen, what do you think of the potential threats and benefits these innovations and technologies will have on the national security of the United States? Do you think more needs to be done to ensure that there are adequate safeguards and regulations in place for digital and cryptocurrencies?” The Finance Committee asked the nominated Treasury Secretary.
“I think it is important to take into account the benefits of cryptocurrencies and other digital assets, and the potential for improving the efficiency of the financial system,” Yellen responded.
And she continued, „At the same time, we know that it can be used to finance terrorism, facilitate money laundering, and support malicious activities that threaten the national security interests of the United States and the integrity of the US and international financial systems,“ explaining:
I think we need to look more closely at how to encourage its use in legitimate activities while limiting its use in malicious and illegal activities.
“If confirmed, I intend to work closely with the Federal Reserve and other banking and securities regulators on how to implement an effective regulatory framework for these and other fintech innovations,” Yellen concluded.
Yellen’s explanation slightly softens its position on cryptocurrencies, and compares them Previous data During the Senate confirmation hearing. „Cryptocurrencies are a particular concern. I think many of them are used … mainly for illicit financing and I think we really need to study the ways in which we can limit their use and make sure that anti-money laundering (sic) doesn’t happen through those channels A few days ago, Yilin said.
Last week, the President of the European Central Bank (ECB), Christian Lagarde, made a statement about Bitcoin that sparked much criticism. she He said Bitcoin „did some funny business and some reprehensible money laundering activities.“ Many were also quick to point out how wrong Lagarde was, including the celebrity economic Who said her statement was „outrageous“. He stressed that „we all know that the vast majority of money laundering operations in the world are carried out in fiat currencies, especially in the US dollar and the euro.“
What do you think of Janet Yellen’s follow-up notes about Bitcoin? Let us know in the comments section below.
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