Janet Yellen Suggests ‘Cutting Down’ Cryptocurrencies Like Bitcoin, Claiming They Are Primarily Used For Illegal Funding | Currency News | Financial and business news

Candidate for Treasury Secretary Janet Yellen has suggested lawmakers “restrict” the use of cryptocurrencies such as Bitcoin, expressing concern that they are “primarily” used for illegal activities.

His comments come amid renewed interest in Bitcoin, with its price climbing about 300% last year. The price of Bitcoin was down 7.59% to $ 34,183.57, while the price of rival cryptocurrency Ethereum was down 9.74% to $ 1,259.97, after hitting an all-time high of over $ 1430 yesterday.

But Yellen’s comments suggest that the incoming Joe Biden administration could be hostile to cryptocurrencies and try to tighten regulation. Watchdogs around the world, from the European Central Bank to the UK financial regulator, have recently expressed concern over cryptocurrencies like Bitcoin.

Senator Maggie Hassan asked Yellen yesterday about the dangers of terrorists using cryptocurrencies during the latter’s Treasury confirmation hearing.

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Yellen said: “You are absolutely right that the technologies to accomplish this change over time, and we need to make sure that our methods of dealing with these issues, along with terrorist financing, change as the world evolves. technology.

“Cryptocurrencies are of particular concern. I think a lot of them are used – at least in a transactional sense – primarily for illicit financing.

“And I think we really need to look at ways in which we can reduce their use and make sure money laundering doesn’t happen through those channels.”

Yellen’s comments echo those of ECB President Christine Lagarde, who said last week that Bitcoin had been used for “grossly reprehensible money laundering activity.”

Large investors also have similar concerns. Warren Buffet said last year that “Bitcoin has been used to move a fair amount of money illegally.” He said investors should “pack short” because criminals will no longer need them to carry money.

Cryptocurrencies are digital currencies that have no physical form and are not controlled by a centralized authority such as a central bank. This means that they are largely unregulated and not found, which makes them attractive to criminals.

Yet their advocates argue that the lack of central control makes them attractive in other ways. For example, they argue that Bitcoin can serve as a hedge against degradation of national currencies when central banks launch huge stimulus programs.

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Bitcoin bulls are extremely excited about the recent rise in the price of cryptocurrency.

Paolo Ardoino, chief technology officer at crypto exchange Bitfinex, said, “The king of crypto is the foundation layer of an emerging alternative financial system.

“Bitcoin provides a solid foundation for an impressive range of projects, some of which will fundamentally change the nature of money by the end of the decade.” Bitcoin products include funds and options.

Yet regulators urge caution. Earlier this month, the UK’s Financial Conduct Authority warned that people who invest in cryptocurrencies like Bitcoin and Ethereum could well “lose all their money.”