Janet Yellen, chosen by Joe Biden as finance minister, has revealed her policy on cryptocurrencies, including bitcoin. She argues that cryptocurrencies are mainly used for illegal financing and their use should be limited.
Janet Yellen reveals her plans for cryptocurrencies
During a Senate hearing to consider Janet Yellen’s candidacy for finance minister on Tuesday, Yellen was asked about cryptocurrencies. She was chosen by Joe Biden to head the Treasury under his administration.
The crypto question was asked by Senator Maggie Hassan (D-NH), who spoke about “the importance of cash programs to combat the financing of terrorists and criminal organizations.” She said she had raised the issue in previous hearings with Finance Minister Stephen Mnuchin.
“The bipartisan National Defense Authorization Act, passed earlier this month, included a provision led by Senator Warner that set up a Treasury advisory group to counter new ways in which terrorists use emerging financial technologies,” she began. “One area of growing concern, for example, is the potential of terrorists and criminals to use cryptocurrency to fund their activities.”
Senator Hassan went on to ask, “So, Dr. Yellen, can you outline some of these emerging technological concerns and how the Treasury should fight new forms of terrorists and criminal funding?”
Yellen replied: “Senator, I think you are absolutely right that technology will achieve this change over time and we need to make sure that our methods of dealing with these issues with the financing of technological terrorists change along with the changing The incoming Minister of Finance specified:
Cryptocurrencies are particularly worrying. I think many of them are used, at least in terms of transactions, mainly for illegal financing, and I think we really need to explore ways in which we can limit their use and make sure that money laundering (sic) is not happens through these channels.
Bitcoiners are responding to Yellen’s remarks
Following the testimony of Jelena from the Senate, the crypto community pointed out several shortcomings in her statements. Russell Okung, the professional football star who recently became the first NFL player to receive a salary in bitcoin, commented: “Financial sector nominee Yellen says that bitcoin is about financing terrorism, money laundering … as if the US dollar is not such. Don’t be distracted. Things from the past are passing, fight for your future. “
Dan Held, head of growth at the Kraken cryptocurrency exchange, said: “0.3% of all cryptocurrency activity in 2020 was illegal. 90% of the US dollars are cocaine. Who is being used again by the bad guys?
Morgan Creek Digital partner Anthony Pompliano described it similarly: “Janet Yellen said today that cryptocurrencies are linked to terrorist financing and money laundering. She forgot to mention that the US dollar is the currency of choice for criminals around the world. “He added:
Big banks launder more money than the entire market capitalization of bitcoins.
Some people refer to the “man with the bitcoin sign” who became famous when he raised a sign that said “buy bitcoin” behind Yellen, as she testified in a previous Senate hearing as chairman of the Federal Reserve. Maybe she “missed the mark”, some bitcoiners suggest. Ivan at Tech wrote on Twitter on Wednesday: “Janet Yellen promises to deal with bitcoins in a recent interview. It is still salty for this bitcoin incident. “
Yellen is not the only one who has recently suggested that most cryptocurrencies are for illegal purposes. Last week, the president of the European Central Bank (ECB), Christine Lagarde, said that bitcoin “has done some fun business and some interesting and completely reprehensible money laundering activities.” However, a prominent economist quickly contradicted it, calling the statement of the head of the ECB “absolutely outrageous when we all know that most of the money laundering in the world is done in fiat currencies, especially in US dollars and euros.”
What do you think of Janet Yellen’s remarks about the cryptocurrency? Let us know in the comments section below.
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