Joe Biden’s choice to become the new US Treasury Secretary, Janet Yellen, has clarified his stance on bitcoin and cryptocurrencies. This follows his remarks during a Senate hearing in which he said cryptocurrencies are mostly used for illegal financing.
Janet Yellen Explains Her Crypto Plans
Janet Yellen explained her stance on the regulation of cryptocurrencies in written evidence published Thursday following a Senate hearing on her nomination as Secretary of the Treasury. During the hearing, Yellen made some statements regarding cryptocurrencies that were strongly criticized as incorrect.
The finance committee began by briefly describing the benefits and risks of bitcoin and other cryptocurrencies. “Bitcoin and digital cryptocurrencies and other cryptocurrencies provide worldwide financial transactions, like many technological advances, this offers potential benefits to the United States, and our allies,” the written evidence reads. “At the same time, it also presents opportunities for states and non-provincial actors who want to circumvent the current financial system and undermine American interests. For example, the Central Bank of China has just announced its first digital currency. ”
“Dr. Yellen, what do you think are the potential threats and benefits that these innovations and technologies will have on US national security? Do you think more needs to be done to make sure we have appropriate safeguards and regulations for digital and cryptocurrencies? “the finance committee asked the Treasury Secretary’s nominee.
Yellen replied: “I think it’s important that we consider the benefits of cryptocurrencies and other digital assets, and their potential to improve the efficiency of the financial system.”
He continued, “At the same time, we know that they can be used to finance terrorism, facilitate money laundering, and support malicious activities that threaten the interests of US national security and the integrity of the United States and international financial systems,” :
I think we need to look closely at how to encourage their use for lawful activities while reducing their use for malicious and illegal activities.
“If ratified, I intend to work closely with the Federal Reserve Board and the other federal banking and securities regulators on how to implement an effective regulatory framework for these and other fintech innovations,” concluded Yellen r collection.
Yellen’s clarification slightly softens her stance on cryptocurrency, contrasting her previous statements made during her Senate confirmation hearing. “Cryptocurrencies are a particular concern. I think many are being used … mainly for illegal financing and I think we really need to explore ways in which we can reduce their use and make sure anti-money laundering (sic) doesn’t happen through those channels, ”Yellen said a few days beforehand.
Last week, European Central Bank (ECB) president Christian Lagarde also made a statement about bitcoin that drew a lot of criticism. He said bitcoin “carried on some funny business and some interesting and understandable money laundering activity.” Many were also quick to point out how wrong Lagarde was, including a famous economist who said her statement was “disgraceful.” He stressed that “we all know that the vast majority of money laundering globally is carried out in fiat currency, especially in US dollars and euros.”
What do you think of Janet Yellen’s subsequent comments about bitcoin? Let us know in the comments section below.
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