Janet Yellen Clarifies Position on Bitcoin – Promises ‘Effective’ Crypto Regulation – Bitcoin News Settlement

The choice of Joe Biden to become the new Secretary of the United States Treasury, Janet Yellen, has clarified his stance on bitcoin and cryptocurrencies. This follows her remarks during a Senate hearing when she said cryptocurrencies are primarily used for illicit financing.

Janet Yellen Clarifies Her Crypto Plans

Janet Yellen clarified her position on cryptocurrency regulation in a written testimony released Thursday following the Senate hearing on his appointment as Secretary of the Treasury. During the hearing, Yellen made statements regarding cryptocurrencies which were heavily criticized for being inaccurate.

The finance committee began by briefly describing the benefits and risks of bitcoin and other cryptocurrencies. “Bitcoin and other digital currencies and cryptocurrencies provide financial transactions around the world, like many technological developments, this offers potential benefits for the United States and our allies,” the written testimony reads. . “At the same time, it also presents opportunities for states and non-state actors seeking to bypass the current financial system and undermine US interests. For example, the Central Bank of China has just released its first digital currency. “

“Dr. Yellen, what do you see as the potential threats and the benefits these innovations and technologies will have on US national security? Do you think more needs to be done to ensure that we have the proper safeguards and regulations in place for digital currencies and cryptocurrencies? The finance committee asked the candidate of the secretary of the treasury.

Yellen replied, “I think it’s important that we consider the benefits of cryptocurrencies and other digital assets, and the potential 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, facilitate money laundering, and support malicious activity that threatens US national security interests and the integrity of systems. American and international financial institutions ”, specifying:

I think we need to take a close look at how to encourage their use for legitimate activities while limiting their use for malicious and illegal activities.

“If this is confirmed, I intend to work closely with the Federal Reserve and other federal banking and securities regulators on how to implement an effective regulatory framework for these innovations and ‘other fintech’, concluded Yellen.

Yellen’s clarification softens his stance on cryptocurrency slightly, in contrast to his previous statements made during his Senate confirmation hearing. “Cryptocurrencies are of particular concern. I think a lot are used … mainly for illicit financing and I think we really need to look at ways to reduce their use and make sure that the fight against money laundering (sic) is not done by these channels, ”Yellen said. days before.

Last week, European Central Bank (ECB) President Christian Lagarde also made a statement on bitcoin that drew much criticism. She said that Bitcoin “has conducted some interesting and totally wrongful fun business and money laundering activities.” Many were also quick to point out how wrong Lagarde was, including a famous economist who said his statement was “outrageous.” He stressed that “we all know that the vast majority of money laundering in the world is carried out in fiat currencies, particularly in US dollars and euros”.

What do you think of Janet Yellen’s follow-up remarks on bitcoin? Let us know in the comments section below.

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