Janet Yellen, Joe Biden’s election for Secretary of the Treasury, has announced its guidelines on cryptocurrencies, including Bitcoin. She claims that cryptocurrencies are mainly used for illegal funding and that their use must be restricted.
Janet Yellen reveals her plans for cryptocurrencies
Yellen was asked about cryptocurrencies in the Senate hearing to consider the appointment of Janet Yellen as Treasury Secretary on Tuesday. She is Joe Biden’s choice to lead the finance department under his administration.
The crypto question was raised by Senator Maggie Hassan (D-NH), who spoke on “the importance of treasury programs in combating the funding of terrorists and criminal organizations”. She said she raised the issue in previous hearings with Treasury Secretary Steven Mnuchin.
“The bipartisan National Defense Authorization Bill was passed earlier this month and included a provision, led by Senator Warner, to set up an advisory group with the Treasury Department to counter new ways in which terrorists use emerging financial technologies,” she began. “For example, one area of growing concern is the potential for terrorists and criminals to use cryptocurrency to fund their activities.”
Senator Hassan went on to ask, “So Dr. Yellen, can you outline some of these emerging technology concerns and how the Treasury Department should address new forms of terrorists and criminal funding?”
Yellen replied, “Senator, I think you are absolutely right that the technologies used to address this issue are changing over time, and we need to ensure that our methods of addressing these issues are aligned with the technology terrorists who are funding funding change with technological change. ” The incoming finance minister explained:
Cryptocurrencies are of particular concern. I think a lot of them are mostly used for illegal funding, at least in terms of transactions, and I think we really need to look into how we can limit their use and make sure that anti-money laundering (sic) channels don’t go through these channels.
Bitcoiners are responding to Yellen’s comments
According to Yellen’s testimony in the Senate, the crypto community pointed out some flaws in their statements. Russell Okung, the professional soccer star who recently became the first NFL player to be paid with bitcoin, commented: “Yellen, Treasury candidate, says bitcoin is a terrorist financing problem, money laundering … as if the USD isn’t would.” Do not let yourself get distracted. The old things pass, fight for your future. “
Dan Held, growth leader at Crypto Exchange Kraken, stated, “0.3% of all cryptocurrency activity in 2020 was illegal. 90% of the US dollar contains cocaine. Which one is used again by the wicked? “
Anthony Pompliano, partner at Morgan Creek Digital, described it similarly: “Janet Yellen today stated that cryptocurrencies are important because of terrorist financing and money laundering. She forgot to mention that the US dollar is the preferred currency for criminals around the world. ” He added:
The big banks launder more money than the entire Bitcoin market capitalization.
Some people referred to the “bitcoin sign guy” who became famous when he held up a sign reading “Buy Bitcoin” behind Yellen, as she testified in an earlier Senate hearing as chairwoman of the Federal Reserve. Maybe she “missed the sign,” suggested some Bitcoiners. Ivan on Tech tweeted on Wednesday: “Janet Yellen promises to look for Bitcoin in a recent interview. She’s still salty for that bitcoin sign incident. “
Yellen isn’t the only one to suggest recently that most crypto activity is for illegal purposes. Last week, European Central Bank (ECB) President Christine Lagarde said that Bitcoin “did some fun business and some interesting and utterly reprehensible money laundering activity”. However, one famous economist was quick to contradict her, describing the ECB chief’s statement as “utterly outrageous when we all know that the vast majority of money laundering worldwide is carried out in fiat currencies, particularly US dollars and euros.”
What do you think of Janet Yellen’s cryptocurrency comments? Let us know in the comments below.
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