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Joe Biden\u2019s pick to become the new U.S. Treasury Secretary, Janet Yellen, has clarified her stance on bitcoin and cryptocurrencies. This follows her remarks during a Senate hearing when she said that cryptocurrencies are mostly used for illicit financing.<\/strong><\/p>\n Janet Yellen clarified her position on the regulation of cryptocurrencies in a written testimony published Thursday following the Senate hearing on her nomination as the Treasury Secretary. During the hearing, Yellen made some statements<\/a> regarding cryptocurrencies which were heavily criticized as being inaccurate.<\/p>\n The finance committee began by briefly describing the benefits and risks of bitcoin and other cryptocurrencies. \u201cBitcoin and other digital and cryptocurrencies are providing financial transactions around the globe, like many technological developments, this offers potential benefits for the U.S., and our allies,\u201d the written testimony reads. \u201cAt the same time, it also presents opportunities for states and non-state actors looking to circumvent the current financial system and undermine American interests. For example, the Central Bank of China just issued its first digital currency.\u201d<\/p>\n \u201cDr. Yellen, what do you view as the potential threats and benefits these innovations and technologies will have on U.S. national security? Do you think more needs to be done to ensure we have appropriate safeguards and regulations for digital and cryptocurrencies in place?\u201d the finance committee asked the Treasury Secretary nominee.<\/p>\n Yellen replied: \u201cI think it important we consider the benefits of cryptocurrencies and other digital assets, and the potential they have to improve the efficiency of the financial system.\u201d<\/p>\n She continued, \u201cAt the same time, we know they can be used to finance terrorism, facilitate money laundering, and support malign activities that threaten U.S. national security interests and the integrity of the U.S. and international financial systems,\u201d elaborating:<\/p>\n I think we need to look closely at how to encourage their use for legitimate activities while curtailing their use for malign and illegal activities.<\/p>\n<\/blockquote>\n \u201cIf confirmed, I intend to work closely with the Federal Reserve Board and the other federal banking and securities regulators on how to implement an effective regulatory framework for these and other fintech innovations,\u201d Yellen concluded.<\/p>\n <\/ins> <\/ins> <\/p>\n Yellen\u2019s clarification marginally softens her stance on cryptocurrency, contrasting her previous statements<\/a> made during her confirmation Senate hearing. \u201cCryptocurrencies are a particular concern. I think many are used \u2026 mainly for illicit financing and I think we really need to examine ways in which we can curtail their use and make sure that anti-money laundering (sic) doesn\u2019t occur through those channels,\u201d Yellen said a few days prior.<\/p>\n Last week, the president of the European Central Bank (ECB), Christian Lagarde, also made a statement about bitcoin that drew much criticism. She said<\/a> bitcoin \u201chas conducted some funny business and some interesting and totally reprehensible money laundering activity.\u201d Many were also quick to point out how wrong Lagarde was, including a famed economist<\/a> who said her statement was \u201coutrageous.\u201d He stressed that \u201cwe all know that the vast majority of money laundering globally is conducted in fiat currencies, particularly in U.S. dollars and euros.\u201d<\/p>\nJanet Yellen Clarifies Her Crypto Plans<\/h2>\n
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