Janet Yellen, the new U.S. Treasury Secretary, has warned about â€œa growing problemâ€ from â€œthe misuse of cryptocurrencies.â€ She emphasized that â€œcryptocurrencies have been used to launder the profits of online drug traffickers; theyâ€™ve been a tool to finance terrorism.â€
Janet Yellen Warns of Cryptocurrency Risks
The U.S. Department of the Treasury hosted its inaugural Financial Sector Innovation Policy Roundtable on Feb. 9 and 10. â€œThe Roundtable brought together policymakers and regulators with experts from the private sector to exchange views for collaborating on policy issues and innovative technologies,â€ the department described.
Treasury Secretary Janet Yellen briefly talked about cryptocurrencies during her opening remarks at the event. â€œWeâ€™re living amidst an explosion of risk related to fraud, money laundering, terrorist financing, and data privacy. As the pandemic has moved more of life online, crime has moved with it,â€ she opined. One of the problems she outlined concerns cryptocurrency.
â€œFrom my time at the Fed, I know the crucial role your institutions play in combating crimes like these,â€ she told the event participants. â€œThe private sector invests enormous resources, finding ways to stop bad actors from misusing existing technologies. You also develop new ones.â€
At her Senate confirmation hearing, Yellen caused quite a stir in the crypto community by saying that cryptocurrencies are â€œmainly for illicit financing.â€ She subsequently clarified her position and promised â€œeffectiveâ€ crypto regulation. Meanwhile, the pro-bitcoin U.S. Senator Cynthia Lummis has talked to Yellen about cryptocurrencies and is planning to convince the Treasury Secretary that bitcoin is â€œa great store of value.â€
What do you think about what Yellen said about cryptocurrencies? Let us know in the comments section below.
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