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US Treasury Secretary Janet Yellen (Janet Yellen) has warned of the risks of Bitcoin because the price of cryptocurrencies has plummeted. She views Bitcoin as a highly speculative asset and is concerned about potential losses that investors may suffer. Yellen also believes that Bitcoin is not widely used as a transaction mechanism due to its inefficiency, reiterating her view that cryptocurrencies are often used for “illegal finance.”
Janet Yellen blasted Bitcoin again in an interview with CNBC at the Dealbook meeting of the New York Times on Monday. The news media stated that the Minister of Finance “issued a warning about the danger that Bitcoin poses to investors and the public.”
Regarding Bitcoin, to quote Yellen:
This is a highly speculative asset, you know that I think people should be aware that it can be very unstable, and I do worry about the potential losses that investors may suffer.
According to data from markets.bitcoin.com, on Sunday afternoon, the price of Bitcoin began to fall sharply, falling nearly 18% from a high of 58K USD to 47827 USD. Its market value has fallen below $1 trillion.
The Minister of Finance further believes that:
I don’t think Bitcoin… is widely used as a transaction mechanism. I worry that to a certain extent, it is usually used for illegal financing.
She added: “This is an extremely inefficient way to conduct transactions, and the energy consumed to process these transactions is staggering.”
Many Bitcoin manufacturers blasted Yellen’s comments on social media, accused the Minister of Finance of not understanding Bitcoin, and suggested that she conduct some research before making a statement on the subject.
“Janet Yellen of the U.S. Treasury Department said:’Bitcoin is extremely inefficient’,” commented Robert Kiyosaki, author of rich dad and poor dad. “Give me a break. Does she think it is effective to print trillions of dollars of counterfeit coins? She doesn’t know that the more counterfeit coins printed, the more efficient and valuable Bitcoin becomes? God bless her.”
In the same interview, Yellen also talked about the theme of central bank digital currency. The Federal Reserve said it is studying the digital dollar, which may be launched in the next few years. Yellen said: “I think this may lead to faster, safer and cheaper payments, which is my important goal.”
Since the Senate confirmed the hearing in January this year, the Minister of Finance has talked about Bitcoin and cryptocurrencies several times. She has pledged to cooperate with other federal regulatory agencies to implement effective supervision of cryptocurrencies. She claimed that the abuse of cryptocurrency is a growing problem, and last week she emphasized the importance of regulating Bitcoin trading institutions to ensure that they comply with regulatory responsibilities.
What do you think of Janet Yellen’s remarks about Bitcoin? Let us know in the comments section below.
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