US Treasury Secretary Janet Yellen criticized Bitcoin’s energy consumption and transaction service at an event held by the New York Times on Monday.
“I don’t think Bitcoin is widely used as a transaction mechanism,” says Yellen, quoted by The Times as part of the DealBook DC Policy Project event today. said.
“It’s an extremely inefficient way of running transactions and the amount of energy consumed in processing these processes is staggering.”
Regarding central bank digital currencies or CBDCs, Yellen said many questions remain, including the impact on monetary policy and how the Fed will interact with retail users.
“What would be the impact on the banking system? Will it cause a massive deposit movement from the banks and the Fed? Does the Fed deal with retail customers or does it try to do so at the wholesale level? Are there financial stability concerns? How can we manage money laundering and illegal financial problems? There is a lot to consider here, but it is worth checking out. ”
Today’s remarks by Yellen, who was appointed Treasury Minister on January 25 this year, are similar to his previous stance on crypto. “I’m not a fan of Bitcoin,” said Yellen at the Montreal Fintech Forum in 2018. he said and stated that this is not “a very effective currency or stable sources of value.”
In his testimony to the US Senate for his appointment as Treasury Secretary, Yellen said that Bitcoin and other cryptocurrencies offer “potential benefits for the US and its allies” and “can increase the efficiency of the financial system”.