Treasury Secretary candidate Janet Yellen, who previously chaired the Federal Reserve, said in a written statement Thursday that cryptocurrencies and digital assets have the potential to “increase the efficiency of the financial system.”
In his written words, he stated:
“Bitcoin and other digital and cryptocurrencies provide financial transactions worldwide. Like many technological advances, this offers potential benefits for the US and our allies. ”
“It also offers opportunities for states and non-state actors who want to overcome the current financial system and undermine American interests. For example, the Bank of China just released the first digital currency ”
Yellen, particularly when asked about her views on potential benefits and risks, said:
“I think it’s important that we consider the benefits of cryptocurrencies and other digital assets and the potential they have to increase the efficiency of the financial system. At the same time, we know that they can be used to finance terrorism and facilitate money laundering. There is support for malicious activities that threaten US national security interests and the integrity of the US and international financial systems. I think we should examine closely how we can encourage their use for legitimate activities while limiting their use in malicious and illegal activities. ”
His comments reflect the comments made earlier this week during the ongoing approval process, in which Yellen has taken a measured attitude towards cryptocurrencies. In response to a senator’s question, Yellen expressed her support to prevent the illegal use of cryptocurrencies.
US President Joe Biden, who took office Wednesday, nominated Yellen as head of the Treasury Department in November.