During a recent interview, US Treasury Secretary Janet Yellen came up with the idea of creating a digital dollar. There are many indications that it is open to US regulators considering issuing its digital currency. The problem is that he has serious concerns about Bitcoin (BTC) itself.
The US Treasury Secretary is talking about the e-dollar
IN interview with The New York Times, new US Treasury Secretary Janet Yellen said the Federal Reserve should rethink the sense of creating a digital dollar. In an interview with Andrew Ross Sorkin, she admitted that the digital dollar could make it possible “Faster, safer and cheaper payments.” However, she also added that the matter was more complicated. Therefore, before the Fed designs its CBDC, “many things still have to be considered. It includes about how regulators “They cope with money laundering and illegal financing”, and the impact of all of this on the banks and the Fed.
Bitcoin is not a currency
In addition, she criticized Bitcoin as a medium of exchange, not to mention its use as a means of storing value.
– I don’t think Bitcoin is widely used as a trading mechanism. […] This is an extremely inefficient way to conduct transactions, and the amount of energy used in processing these transactions is staggering – she said.
It is worth recalling that Yellen spoke about cryptocurrencies and BTC even before she was sworn in to her current office, which took place on January 26. During a Senate hearing, she called cryptocurrencies “a growing problem “ in the United States, which “Mainly concerns illegal financing”. Her subsequent written statement somewhat softened this view. But it still associates digital resources with illegal financing.
Yellen is the first woman to serve as US Treasury Secretary. Previously, she served as chairman of the Federal Reserve under former US President Barack Obama. She left this position in early 2018.
She once stated that Bitcoin is “Anything but useful.” However, we do not know its broader view of the entire cryptocurrency and blockchain market. It is possible that regulating these issues will be a key part of Joe Biden’s policy.