Dr. Janet Yellen, the nominee for United States Secretary of the Treasury. It has revealed its policy on cryptocurrencies, including Bitcoin. Specifically, he claimed that cryptocurrencies are primarily used for illicit financing. And its use should be reduced.
True, Janet Yellen made the comments during a hearing with the Finance Committee. Also, he advocated for greater fiscal stimulus. By telling Congress to “go big.” When it comes to helping America’s ailing economy.
As a curious fact, in her previous position as president of the Federal Reserve. Yellen has spoken dismissively of Bitcoin. And said that “she is not a fan».
Do cryptocurrency transactions help finance terrorist acts?
For Janet Yellen, there are various concerns around the use of cryptocurrencies.
In these circumstances, at a Senate Finance Committee hearing. Yellen cautioned that the United States should be aware of emerging tools. For terrorist financing.
In this context, he stated that cryptocurrencies are a «particular concern». For law enforcement officials.
Consequently, during the hearing, Senator Maggie Hassan consulted Janet Yellen about the fight against terrorist financing. Specifically, on last year’s National Defense Authorization Law.
“We need to ensure that our methods of addressing these issues, such as terrorist financing. Change along with the change in technology.
In particular, given the idea put forward by Maggie Hassan, about cryptocurrencies as a possible threat, Yellen expressed her support stating:
‘I think a lot of cryptocurrencies are used at least in the transactional sense. Mainly, for illicit finances.
Adding: “I think we really need to look at the ways in which we can restrict its use. And, make sure that money laundering does not occur through those channels ».
It is important to highlight that, Janet Yellen expressed that her task as head of the Treasury. It will help Americans endure the final months of the pandemic. Also rebuild the economy.
Some respond to Janet Yellen
Following Yellen’s testimony in the Senate. The crypto community pointed out several flaws in their statements.
As a result, Hailey Lennon, legal consultant for cryptocurrency companies. He wrote an analysis in Forbes magazine that shows Yellen is wrong.
In fact, Hailey Lennon emphasizes that «most cryptocurrencies are not used for criminal activities». In this regard, he cites an extract from the Chainalysis report from 2021. Which reveals that, in 2019, criminal activity represented 2.1% of the entire volume of cryptocurrency transactions.
For its part, in 2020 the criminal share of all cryptocurrency activity fell to only 0.34%.
Similarly, Jake Chervinsky, General Counsel of Compound Labs, stated: «It is disappointing to hear Dr. Yellen repeat the erroneous view that cryptocurrencies are primarily used for illicit activities».
As well, Russell okung, the football star, who recently became the first NFL player to receive a payment in Bitcoin, commented: «Yellen says that Bitcoin is a concern for terrorist financing. As if the USD wasn’t».
Similarly, Anthony Pompliano, from Morgan Creek Digital, described: «Janet Yellen stated that cryptocurrencies are a concern due to terrorist financing and money laundering. Forgot to mention that the US dollar is the currency of choice for criminals around the world».
It should be noted, that Yellen is not the only one recently suggesting that most crypto activities are for illicit purposes. Last week, the president of the European Central Bank (ECB), Christine Lagarde, said that Bitcoin «He has done some fun business and interesting money laundering activity. And totally reprehensible».
Finally, what do you think of Janet Yellen’s testimony about cryptocurrencies? Let us know in the comment box.
I say goodbye with this phrase from Paulo Coelho: «We can never judge the lives of others. Because each one knows his own pain and his own resignation».