Treasury candidate Janet Yellen believes that cryptocurrencies could potentially improve the current financial system
US President Joe Biden’s Treasury Secretary Janet Yellen said she saw several benefits for cryptocurrencies and would work to implement a legal framework for such fintech innovations. The former Fed chairman made headlines on Tuesday after a virtual hearing by the Senate Finance Committee.
Democratic Senator Maggie Hassan asked Yellen how she would respond to new financial technologies that serve as a gateway to funding criminal organizations and terrorists. Yellen identified cryptocurrencies as a growing problem in the United States, adding that they were mainly used to fund illegal activities. She added that the United States government must find ways to restrict the use of cryptocurrencies as part of its fight against money laundering.
Yellen’s remarks may not be as bearish as originally thought, however. In a written statement posted on the Senate Finance Committee’s website, the former Fed chairman reiterated the need to restrict the use of cryptos for illegal activities. However, she added that she intended to encourage the use of digital assets for legal activities.
According to Yellen, it’s important to consider the benefits of cryptocurrencies and other digital assets. The United States government needs to evaluate the potential it has for improving the efficiency of the financial system.
The new Treasury Secretary added that she wants the US to be a leader in digital assets and financial technology. To achieve this purpose, Yellen intends to work with the Federal Reserve Board to develop a regulatory framework for crypto and other fintech innovations.
Yellen is one of the most experienced financial professionals in the United States. She served as chairman of the Federal Reserve under President Barack Obama. Yellen has a long history with Bitcoin after calling the cryptocurrency anything but useful in 2018.
At the time, Yellen did not hide her criticism of the cryptocurrency. She said Bitcoin is not used for many transactions, its value is not stable, and it is not an efficient means of processing payments due to its slow payment processing. “It’s struggling with its very decentralized nature“She added.
Bitcoin has successfully changed many opinions in recent years. Institutional investors were previously cautious with Bitcoin and did not want to invest in cryptocurrencies for a number of reasons. However, they are entering the crypto space in droves and investing billions of dollars in the crypto assets.