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Virtual currency Janet Yellen shows an unfavorable position against bitcoin

23/02/2021
Source : ORISHAS FINANCE
Categories: Economy/Forex

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The American Secretary of the Treasury, Janet Yellen, gave an anti-bitcoin speech on Monday, February 22, 2021. These comments helped push down the price of bitcoin. After reaching a new record of more than 58,000 dollars on Sunday, bitcoin was around 52,700 dollars on Monday, a fall of 9%. According to Janet Yellen, bitcoin “is an extremely inefficient way of conducting transactions and the amount of energy consumed to process these transactions is staggering.” Asked by the New York Times, she said, “I don't think that bitcoin [...] is widely used as a transaction mechanism as it is used, I am afraid, often for illicit financing.” She believes that it is a highly speculative asset and is worried about the potential losses that investors may incur. On the other hand, the leader of the US Treasury believes that the creation of a digital dollar could be beneficial to the American economy. A consumer protection issue that Central Banks are thinking about and the Federal Reserve (Fed) are already thinking about.
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