Joe Biden’s pick to transform into the new U.S. Treasury Secretary, Janet Yellen, has clarified her stance on bitcoin and cryptocurrencies. This follows her remarks during a Senate gather when she said that cryptocurrencies are mostly used for illicit financing.
Janet Yellen Clarifies Her Crypto Outlines
Janet Yellen clarified her position on the regulation of cryptocurrencies in a written testimony published Thursday following the Senate discovering on her nomination as the Treasury Secretary. During the hearing, Yellen made some statements regarding cryptocurrencies which were heavily disapprove ofed as being inaccurate.
The finance committee began by briefly describing the benefits and risks of bitcoin and other cryptocurrencies. “Bitcoin and other digital and cryptocurrencies are affording financial transactions around the globe, like many technological developments, this offers potential benefits for the U.S., and our friends,” the written testimony reads. “At the same time, it also presents opportunities for states and non-state actors looking to circumvent the bruited about financial system and undermine American interests. For example, the Central Bank of China just issued its first digital currency.”
“Dr. Yellen, what do you upon as the potential threats and benefits these innovations and technologies will have on U.S. national security? Do you think more sine qua na to be done to ensure we have appropriate safeguards and regulations for digital and cryptocurrencies in place?” the finance committee asked the Resources Secretary nominee.
Yellen replied: “I think it important we consider the benefits of cryptocurrencies and other digital assets, and the unrealized they have to improve the efficiency of the financial system.”
She continued, “At the same time, we know they can be used to finance terrorism, help money laundering, and support malign activities that threaten U.S. national security interests and the integrity of the U.S. and international pecuniary systems,” elaborating:
I think we need to look closely at how to encourage their use for legitimate activities while curtailing their use for malign and proscribed activities.
“If confirmed, I intend to work closely with the Federal Reserve Board and the other federal banking and assurances regulators on how to implement an effective regulatory framework for these and other fintech innovations,” Yellen concluded.
Yellen’s clarification marginally softens her point of view on cryptocurrency, contrasting her previous statements made during her confirmation Senate hearing. “Cryptocurrencies are a particular concern. I characterize as many are used … mainly for illicit financing and I think we really need to examine ways in which we can curtail their use and persuade sure that anti-money laundering (sic) doesn’t occur through those channels,” Yellen said a few days quondam.
Last week, the president of the European Central Bank (ECB), Christian Lagarde, also made a statement about bitcoin that framed much criticism. She said bitcoin “has conducted some funny business and some interesting and totally reprehensible notes laundering activity.” Many were also quick to point out how wrong Lagarde was, including a famed economist who said her asseveration was “outrageous.” He stressed that “we all know that the vast majority of money laundering globally is conducted in fiat currencies, expressly in U.S. dollars and euros.”
What do you think about Janet Yellen’s follow-up remarks about bitcoin? Let us know in the expansions section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational resolves only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not care for investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or claimed to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Read disclaimer