Janet Yellen, the new US Treasury secretary, warned of “a growing problem” of “misuse of cryptocurrencies”. She emphasized that “cryptocurrencies have been used to launder the profits of online drug dealers; they have been a tool for financing terrorism. “
Janet Yellen warns of cryptocurrency risks
The United States Department of the Treasury hosted its first Financial Sector Innovation Policy Roundtable on 9-10 February. described.
Treasury Secretary Janet Yellen spoke briefly about cryptocurrencies during her opening speech at the event. “We are living in an explosion of risks related to fraud, money laundering, terrorist financing and data privacy. As the pandemic changed more of life online, crime changed with her, ”she said. One of the problems she described concerns cryptocurrency.
Yellen stated:
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; they have been a tool for financing terrorism.
“From my time at the Fed, I know the crucial role that your institutions play in fighting crimes like these,” she told event participants. “The private sector invests huge resources, finding ways to prevent evildoers from misusing existing technologies. You also develop new ones. “
At his Senate confirmation hearing, Yellen caused quite a stir in the cryptographic community by saying that cryptocurrencies are “mainly for illicit financing”. However, a report by blockchain analyst firm Chainalysis shows that only 0.34% of all cryptographic transactions in the past year were related to criminal activity. Many also pointed out that most money laundering activities are done through fiat currencies, especially the US dollar.
Subsequently, Yellen clarified his position on cryptocurrencies and promised an “effective” encryption regulation. Meanwhile, U.S. pro-bitcoin senator Cynthia Lummis talked to Yellen about cryptocurrencies and plans to convince the Treasury secretary that bitcoin is “a big store of value”.
What do you think of what Yellen said about cryptocurrencies? Let us know in the comments section below.
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