Although Yellen admits that Bitcoin and other cryptocurrencies offer advantages, she is still skeptical. The US government official is concerned that criminals might use crypto assets in illicit activities like money laundering.
Janet Yellen, the US Treasury Secretary, acknowledges that Bitcoin and other cryptocurrencies can benefit citizens. However, she defends her position against those assets, as she considers them to contribute to illicit activities.
She told the CNBC television channel that cryptocurrencies offer advantages, recognizing that innovation in the payment system can be healthy.
The official recognized that cryptocurrencies have been gaining increasing relevance among citizens. She said that those assets have grown by leaps and now play a crucial role in the decisions of American investors.
Although her words suggest that she is less reluctant toward cryptocurrencies, Yellen argued that she defends her position. She said that she was still skeptical due to concerns about financial stability, consumer investor protection, and illicit transactions.
Since US President Joe Biden nominated her as the Treasury Secretary in 2020, she has been critical of Bitcoin and other cryptocurrencies. She has stated that criminals can easily use those tools for money laundering, tax evasion, and terrorism financing.
Besides highlighting the potentially illegal origin of some bitcoins, Yellen mentioned factors like the stability of the value and its decentralized nature. She argued that Bitcoin is not an efficient means of payment, as it is hard to achieve trust for the inequity of transactions.
Janet Yellen Is on an Individual Crusade to Regulate Bitcoin
Yellen has insisted on tightening the regulation on cryptocurrencies as a necessary measure to prevent illicit activities. However, various studies have revealed that most funds that move illegally worldwide do so through traditional banking.
In January 2021, Yellen seemed to be more flexible about the regulation of crypto assets than other government officials. However, she considered that criminals could use Bitcoin to finance terrorism and launder money, among other international financial crimes. For that reason, she told senators that she would devote herself to encouraging the legal use of that technology.
She made those statements a few days after Biden issued the first executive order focused on Bitcoin and other cryptocurrencies. That document seeks to assess the benefits and risks of using those digital assets in the United States.
Bitcoin is trading at around USD 47,543 and has accumulated a 6.4% gain in the last week. Its daily trading volume is above USD 30.41 billion, and its market capitalization is about 903.15 billion, according to CoinGecko.
US government officials are increasingly aware of the growing relevance of Bitcoin and other cryptocurrencies in the economy. However, they still associate those assets with illicit activities, although research has proved that criminals prefer to use fiat money.
In the case of Janet Yellen, she has expressed her position against crypto assets since she became the US Treasury Secretary. The same as other representatives of the US government, she has acknowledged the advantages that they offer to American citizens.
By Alexander Salazar
