Yellen: Bitcoin is a Very Speculative Asset
US Treasury Secretary Janet Yellen said, “Bitcoin is a very speculative entity.”
US Treasury Secretary Janet Yellen stated that “Bitcoin is a very speculative asset” and stated that Bitcoin is not suitable for transactions. Yellen emphasized that investors should be aware of this situation.
Yellen also stated that it would be beneficial for the FED to work on digital dollars, but stated that they will review the option of stress testing the banks on climate change under the leadership of regulatory institutions.
On the other hand, Yellen stated that the Biden administration will target the areas where the incentives in the coronavirus support package plan did not reach sufficiently, said, “In the previous crisis, there were costs of not spending enough.”
Yellen Made a Statement Regarding the Place of Crypto Coins in Finance
Janet Yellen previously stated that most cryptocurrencies are mainly used for illegal financing, and this situation negatively affected the markets. The statements made by the minister on January 23, on the other hand, delighted the cryptocurrency investors.
Yellen expressed her positive thoughts about cryptocurrency in her written statements to the Congress as follows:
“I think it’s important that we consider the benefits of cryptocurrencies and other digital assets and the potential they have to increase the efficiency of the financial system. We also know that they can be used to finance terrorism, facilitate money laundering and support malicious activities that threaten US national security interests and the integrity of the US and international financial systems. I think we need to look closely at how to encourage their use for legitimate activities while limiting their use for malicious and illegal activities. If confirmed, I plan to work closely with the federal reserve board and other federal banking and securities regulators on how to implement an effective regulatory framework for these and other Fintech innovations.