According to the latest news, Bitcoin is trending currently in the digital market. Digital currency and assets are in demand. Digital assets are trying to change the financial face of the globe. Recently, Mrs. Janet Yellen also provided her opinions on cryptocurrencies. Yellen is a nominee of Joe Biden’s
Treasury Secretary. In addition, she will be holding an important post in Biden’s cabinet if selected. Her comments on cryptocurrency changed significantly in the recent few days.
The preliminary thoughts
She was against cryptocurrency. Moreover, she mentioned that digital currency is a real concern. The digital currency has its usage majorly for illicit financing. She focused on the technology that we need to adapt to deal with the crypto world. She said that we need to have new methods to deal with the matters like tech terrorist financing. We should adapt as per the trends. Moreover, we have to be ready to deal with the crime these technologies will bring. She thought of staying away from crypto.
Cryptocurrency is a magnet for cyber thieves. The blockchain is anonymous and nobody gets caught. There is no control over the blockchains. No individual agency can control these financial networks. Above all, there is no law enforcement agency or regulatory body to regulate its activities.
Her recent meeting at the senate
Mrs. Janet Yellen made a follow-up comment after two days on cryptocurrency. Her opinion in her statement seemed quite contrary to the previous one. Now, she showed a lot of confidence in the potential of digital currencies. After that, she presented her views in the senate committee on finance.
Questions imposed on her
She got few questions to answer regarding new technologies in the senate committee. The question is to present her view on the new emerging technologies. She has to answer on the potential benefits and threats of these on the U.S. national security. Also, she got asked to propose ways to safeguard and regulate digital and cryptocurrencies. She mentioned the wide array of benefits cryptocurrencies have brought in today’s world. Digital currency has the potential to improve the efficiency of the financial system.
Yellen’s changed opinion
She gave emphasis on the legitimate use of Bitcoin. Also, she focused on developing a regulatory framework
to effectively use digital assets. As per her, we have to find ways to encourage the use of digital currency for legitimate purposes. With that, we have to also prevent its usage for illegal and malign activities. Yellen wants to co-ordinate with the Federal Reserve Board. In addition, she wanted to implement a regulatory framework for cryptocurrency and digital assets. Above all, she wants the co-operation of federal banking and securities regulators for this step.
Janet Yellen’s concern regarding cryptocurrencies is actually valid. The reason is the risks involved with cryptocurrencies. Along with the risk factor, multiple thefts and hacking also take place. Moreover, there is no regulatory body overseeing the complete digital world of finance. The wide acceptance of crypto payments has also increased complications. The involvement of cryptocurrency in scams is high in today’s world. This is majorly due to its decentralized nature. Most of the time, the funds lost are never retrieved.