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US Treasury Secretary Janet Yellen has warned of the dangers of bitcoin as the price of cryptocurrency has plunged. She views bitcoin as a highly speculative asset and is concerned about the potential losses investors may incur. Yellen also believes that bitcoin is not widely used as a transaction mechanism due to its inefficiency, reiterating his view that cryptocurrency is often used for “illicit financing.”
Warning from Janet Yellen on Bitcoin
Janet Yellen exploded bitcoin again Monday in an interview with CNBC at the New York Times Dealbook conference. The Secretary of the Treasury “has issued a warning about the dangers that bitcoin poses to both investors and the public,” the outlet said.
Regarding bitcoin, Yellen reportedly said:
It is a highly speculative asset and you know I think people should be aware that it can be extremely volatile and I worry about the potential losses that investors may take.
The price of bitcoin began to drop sharply on Sunday afternoon, dropping nearly 18% from its high above $ 58,000 to $ 47,827 at the time of writing, based on data from market.Bitcoin.com. Its market capitalization has fallen below $ 1 trillion.
The Treasury Secretary added:
I don’t think bitcoin… is widely used as a transaction mechanism. As far as it is used, I fear, it is often for illicit financing.
“It’s an extremely inefficient way to conduct transactions, and the amount of energy consumed to process those transactions is staggering,” she added.
Many bitcoiners criticized Yellen’s remarks on social media, accusing the Treasury Secretary of not understanding bitcoin and advising him to do research before making any statements on the matter.
Sec Treasury Janet Yellen Says, “Bitcoin is extremely inefficient,” commented Robert Kiyosaki, author of Rich Dad Poor Dad. “Leave me alone. Does she think printing billions of fake dollars is effective? Doesn’t she know that the more fake dollars she prints, the more efficient and valuable bitcoin becomes? May God bless her.”
In the same interview, Yellen also touched on the topic of central bank digital currencies. The Federal Reserve said it was studying the digital dollar, which could unfold over the next few years. Yellen said: “I think this could lead to faster, safer and cheaper payments, which I think are important goals.”
The Secretary of the Treasury has spoken several times about bitcoin and cryptocurrencies since her Senate confirmation hearing in January. She has promised to work with other federal regulators to implement effective regulations for cryptocurrency. Claiming that the misuse of cryptocurrencies is a growing problem, she stressed last week the importance of regulating institutions that process bitcoin to ensure they meet their regulatory responsibilities.
What do you think of Janet Yellen’s remarks on bitcoin? Let us know in the comments section below.
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