During the New York Times event, US Treasury Secretary Janet Yellen criticized bitcoin’s energy consumption and the usefulness of transactions.
In her opinion, bitcoin is not very common as a transaction mechanism:
“Bitcoin is an extremely inefficient way of executing transactions, and the amount of energy consumed for these transactions is staggering.”
Regarding central bank digital currencies (CBDCs), Yellen said many questions remain, including the impact on monetary policy and how the Fed interacts with retail users:
“How will the introduction of CBDC affect the banking system? Will this lead to a huge outflow of deposits from banks to the Fed? Will the Fed deal with retail buyers, or will the project only work with large clients? Will there be problems with financial stability? How will money laundering and illegal financing issues be dealt with? There is something to think about here, but it’s worth it. “
On January 25 this year, Yellen was appointed to the post of Minister of Finance and her speech today proves that she has not changed her position in relation to cryptocurrency. Back in 2018 at the Montreal Fintech Forum, Yellen said:
“I am not a fan of bitcoin and it is not a very efficient form of currency or a stable source of value.”
Prior to her appointment, Yellen stated that bitcoin and other cryptocurrencies offer potential benefits to the United States and allies, and can also improve the efficiency of the financial system.
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