The next US Treasury Secretary, Janet Yellen, changed his view on cryptocurrencies in a new hearing from the US Senate finance committee. “Bitcoin and other digital currencies… bring potential benefits to the US and our allies,” he said.
Yellen, Joe Biden’s current choice for the head of the Treasury Department, said on Thursday (21) that cryptocurrencies could improve the efficiency of the US financial system. The former chairman of the US Federal Reserve (Fed) has made it clear that she seeks to fight illegal activities and encourages the use of digital currencies in current and future regulations.
As report from your Senate hearing, she said, “Bitcoin and other cryptocurrencies are providing financial transactions around the world. Like many technological developments, this brings potential benefits to the United States and our allies. I think it’s important to consider the benefits of cryptocurrencies and other digital assets, and their potential to improve the efficiency of the financial system.
Cryptocurrencies finance the fear of terrorism
However, Yellen is not just optimistic about digital currencies. At a similar Senate session, the nominated Finance Minister also considered: “At the same time, however, we know that (cryptocurrency) can also be used to fund terrorism, facilitating for money laundering and supporting evil practices that threaten the interests of the national security and the integrity of the US financial system. “
At his inauguration hearing, held on Tuesday (19), Yellen created uncertainty in the cryptocurrency market. “We need to make sure that our methods of dealing with these problems, with terrorist financing technologies, keep up with their changes. Cryptocurrencies are a particular concern, ”he said.
The market reassures itself by speaking in moderation
As the future head of the US Treasury Department, Yellen will be responsible for a re-evaluation of regulatory proposals from previous governments, such as the controversial rule set by FinCEN (Crime Enforcement Network financial) proposal to ask brokers and digital wallets to collect personal information from users.
After Joe Biden froze the legal proceedings on the day of his inauguration, many uncertainties happened to the appointed Secretary position. It will play a pivotal role in setting future digital currency standards in the United States. Now, his most recent speech has calmed and allayed investors’ fears.
“I think we need to carefully consider how to encourage their use (cryptocurrencies) for legitimate activities while restricting their use for bad and illegal activities.
I plan to work closely with the Federal Reserve and other federal banks and securities regulators on how to enforce effective regulations on these and other fintech innovations, ”He concluded.
With information: Financial funds