US Treasury Nominee Yellen Wants to Encourage Cryptocurrencies -- 'For Legitimate Activities'

Business Insider reports:

The bitcoin price was set for its biggest one-week fall since September on Saturday morning, having slipped around 10% since Monday...

Bitcoin came under selling pressure this week after Janet Yellen, Joe Biden's pick for Treasury secretary, suggested the use of cryptocurrencies should be 'curtailed' because they were used mainly for 'illicit financing'.

Writing at Nasdaq.com on Thursday, CoinDesk shared a link to U.S. Treasury Secretary nominee Janet Yellen's later written responses to the same questions, where Yellen states that bitcoin and other cryptocurrencies also offer potential benefits to the U.S. and its allies.
'At the same time, it also presents opportunities for states and non-state actors looking to circumvent the current financial system and undermine American interests. For example, the Central Bank of China just issued its first digital currency.'

I think it is important we consider the benefits of cryptocurrencies and other digital assets, and the potential they have to improve the efficiency of the financial system. At the same time, we know they can be used to finance terrorism, facilitate money laundering, and support malign activities that threaten U.S. national security interests and the integrity of the U.S. and international financial systems.

I think we need to look closely at how to encourage their use for legitimate activities while curtailing their use for malign and illegal activities. If confirmed, I intend to work closely with the Federal Reserve Board and the other federal banking and securities regulators on how to implement an effective regulatory framework for these and other fintech innovations.

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