The cryptosphere has been questioning US policy towards cryptocurrencies and Bitcoin for months now. Indeed, some decisions taken Oacross the Atlantic by the new Biden administrationint have significant consequences on the price of cryptos. Since her appointment, all eyes are therefore logically on Janet Yellenot, new new secretary of the US treasury. Wednesday, February 24 2021, she gave an interview where she evokes his rather clear-cut opinion on Bitcoin.
Janet Yellen, new secretary at TAmerican resor
Janet Yellen was appointed in January 2021 as head of the US Treasury. In the past, Janet Yellen has instead displayed some skepticism for cryptos. Much to the dismay of the cryptosphere, the initial statements by the Secretary of the Treasury suggested that the recent crypto boom had not changed her mind! Indeed, Janet Yellen had mentioned in January the need to regulate cryptocurrencies. In addition, she had pointed out that, for her, cryptos were above all a means of financing illicit activities.
Recently, she gave an interview where she further clarified her thinking on Bitcoin. On Wednesday February 24, 2021, she spoke with CNBC during the New York Times Dealbook conference. The opportunity to come back to some highlights of his interview.
For Janet Yellen, Bitcoin is "highly speculative"
Let's say it right away, the general tone of the interview is rather negative on the Bitcoin. First, Janet Yellen has repeatedly stressed her concern about the "dangers" Bitcoin poses to investors. For her, the too much volatility of Bitcoin makes its use almost impossible. Pointing in particular to the energy-intensive side of Bitcoin, she also pointed out that Bitcoin was "an extremely inefficient way to transact."
“It’s (Bitcoin) a highly speculative asset, I think people should be aware that it’s extremely volatile and I’m worried about the potential losses investors might have. (…) I don't think Bitcoin… is used primarily as a means of transaction. I fear that it is rather in the context of illicit finance "
Janet Yellen, Secretary of the US Treasury
Finally, Janet Yellen also spoke about the other strong news of the moment: the possible creation of a national electronic money. Indeed, the Fed has been considering for several months the creation of a digital dollar or e-dollar. Unsurprisingly, Janet Yellen was rather rave about this initiative! According to her, the electronic dollar is a "faster, safer and cheaper" means of payment than Bitcoin.
These rather strong statements caused a lot of reaction on social networks. The debate on Bitcoin and cryptocurrencies across the Atlantic has only just begun …