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US Treasury Secretary Janet Yellen reaffirmed the importance of ensuring that bitcoin and other cryptocurrencies are not used for illicit financing. In addition, it emphasizes the importance of regulating institutions that deal with bitcoin.
Janet Yellen Says It’s Important To Make Sure Bitcoin Is Not Used For Illicit Funding
U.S. Treasury Secretary Janet Yellen answered some questions regarding bitcoin and cryptocurrency regulation during an interview with CNBC on Thursday.
Yellen said she views bitcoin as a “highly speculative asset,” pointing to its high levels of volatility in recent years. Responding to a question of whether bitcoin and cryptocurrencies should be regulated, the Treasury Secretary said:
I think it is important to ensure that it is not used as a vehicle for illicit transactions and that there is investor protection. And so regulating the institutions that deal with bitcoin, making sure they meet their regulatory responsibilities, I think that’s certainly important.
The price of bitcoin hit an all-time high on Friday again, pushing its market cap above $ 1 trillion. At the time of writing this article, the BTC price stands at $ 54,757.
This is not the first time that Yellen has spoken about the cryptocurrencies that fuel illicit transactions. During her Senate confirmation hearing in January, she said, “Cryptocurrencies are of particular concern. I think a lot of it is used … mainly for illicit financing. She then clarified her position and promised to work with other federal regulators to implement “effective” crypto regulation. Then last week, she said that the misuse of cryptocurrencies “is a growing problem”, reiterating that they “have been used to launder the profits of online drug traffickers” and have “been a tool for finance terrorism ”.
Commenting on Yellen’s bitcoin remarks on Thursday, Rich Dad Poor Dad author Robert Kiyosaki wrote:
Sec Treasury Yellen just told CNBC that bitcoin is being used in criminal activity. Leave me alone. And the US dollar is not. Who can believe these academic elites? Do they think we are also naive? Definitely buy more gold, silver, bitcoin.
A growing number of large companies have embraced bitcoin. Cryptocurrency recently received a massive boost when Elon Musk’s electric car company Tesla revealed that it had purchased $ 1.5 billion worth of BTC and would soon accept cryptocurrency as a means of payment for its products. Mastercard has also announced that it will allow certain cryptocurrencies on its network, and the country’s oldest bank, BNY Mellon, has unveiled an encryption unit to provide Bitcoin services. In addition, the American city of Miami is trying to become a bitcoin hub.
Meanwhile, pro-bitcoin US Senator from Wyoming, Cynthia Lummis, is on a mission to convince Yellen that bitcoin is a great store of value. Lummis said she met Yellen and thinks she’s open-minded about it. However, the senator still believes that it will take some time to convince the Secretary of the Treasury.
What do you think of Yellen’s Bitcoin remarks? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
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