Janet Yellen, the new US Treasury Secretary, warned of a ‘growing problem’ of ‘the misuse of cryptocurrencies’. She stressed that ‘cryptocurrencies are used to launder the profits of online drug dealers; it was a tool to finance terrorism. ”
Janet Yellen warns of the risks of cryptocurrency
The US Department of the Treasury hosted the inaugural round of innovation policy on the financial sector on 9 and 10 February. describe.
Treasury Secretary Janet Yellen spoke briefly about cryptocurrencies during her opening speech at the event. ‘We live in the midst of an explosion of risks related to fraud, money laundering, terrorist financing and data privacy. As the pandemic has moved more of life online, crime has moved along with it, ‘she says. One of the problems she outlined is cryptocurrency.
Yellen claims:
The misuse of cryptocurrencies and virtual assets is also a growing problem. I see the promise of these new technologies, but I also see the reality: cryptocurrencies have been used to launder the profits of online drug dealers; it was a tool to finance terrorism.
“From my time at the Fed, I know the important role your institutions play in fighting crimes like this,” she told participants. ‘The private sector is investing enormous resources in finding ways to exploit bad actors to exploit existing technologies. You also develop new ones. ”
At her Senate confirmation hearing, Yellen caused a great stir in the crypto community by saying that cryptocurrencies are ‘primarily for illegal financing’. However, a report by blockchain analytics firm Chainalysis shows that only 0.34% of all cryptocurrencies last year were related to criminal activity. Many have also pointed out that most money laundering activities take place via fiat currencies, particularly the US dollar.
After that, Yellen clarified her position on cryptocurrencies and promised ‘effective’ cryptocurrency regulation. Meanwhile, U.S. bitcoin Senator Cynthia Lummis spoke to Yellen about cryptocurrencies and plans to convince the Treasury Secretary that bitcoin is a great value. ‘
What do you think of what Yellen said about cryptocurrencies? Let us know in the comments below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for information only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is directly or indirectly responsible for any damage or loss caused or claimed to have been caused by or in connection with the use or reliance on any content, goods or services mentioned in this article.