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US Treasury Secretary Janet Yellen Says ‘the Misuse of Cryptocurrencies Is a Rising Downside’

02/12/2021

Janet Yellen, the brand new U.S. Treasury Secretary, has warned about “a rising downside” from “the misuse of cryptocurrencies.” She emphasised that “cryptocurrencies have been used to launder the income of on-line drug traffickers; they’ve been a device to finance terrorism.”

Janet Yellen Warns of Cryptocurrency Dangers

The U.S. Division of the Treasury hosted its inaugural Monetary Sector Innovation Coverage Roundtable on Feb. 9 and 10. “The Roundtable introduced collectively policymakers and regulators with consultants from the non-public sector to trade views for collaborating on coverage points and revolutionary applied sciences,” the division described.

Treasury Secretary Janet Yellen briefly talked about cryptocurrencies throughout her opening remarks on the occasion. “We’re residing amidst an explosion of threat associated to fraud, cash laundering, terrorist financing, and knowledge privateness. Because the pandemic has moved extra of life on-line, crime has moved with it,” she opined. One of many issues she outlined issues cryptocurrency.

Yellen asserted:

The misuse of cryptocurrencies and digital belongings is a rising downside, too. I see the promise of those new applied sciences, however I additionally see the truth: cryptocurrencies have been used to launder the income of on-line drug traffickers; they’ve been a device to finance terrorism.

“From my time on the Fed, I do know the essential function your establishments play in combating crimes like these,” she informed the occasion individuals. “The non-public sector invests monumental sources, discovering methods to cease unhealthy actors from misusing present applied sciences. You additionally develop new ones.”

At her Senate affirmation listening to, Yellen precipitated fairly a stir within the crypto neighborhood by saying that cryptocurrencies are “primarily for illicit financing.” Nevertheless, a report by blockchain analytics agency Chainalysis reveals that solely 0.34% of all crypto transactions final yr have been associated to legal actions. Many additionally identified that almost all of cash laundering actions are accomplished by way of fiat currencies, notably the U.S. greenback.

Yellen subsequently clarified her place concerning cryptocurrencies and promised “efficient” crypto regulation. In the meantime, the pro-bitcoin U.S. Senator Cynthia Lummis has talked to Yellen about cryptocurrencies and is planning to persuade the Treasury Secretary that bitcoin is “an awesome retailer of worth.”

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