Forex in this article
Janet Yellen Warns of Bitcoin risks
Questions about legality and stability remain open
Yellin expressed her concerns about the illegal misuse of digital currencies
Bitcoin is struggling to shed its image as a volatile investment tool and looks attractive to classic investors. Many companies are now interested in Bitcoin. PayPal initially caused an upbeat sentiment to announce that it will offer cryptocurrency payment methods in the future. But at least with Elon Musk’s surprising announcement about Teslas Investing two billionaires in BitcoinThe cryptocurrency veteran has gained popularity thanks to pre-eminent support. It was recently reported that the asset managers have been doing business with BlackRock Increasingly with Bitcoin. BTC’s rally did not stop when the new US Treasury Secretary was skeptical about the digital currency in February.
Yellin has big concerns about Bitcoin
Yellin expressed known concerns at the end of February, when Bitcoin was in the middle of its record run. These addressed open questions about the legality and stability of the internet currency. “I don’t think Bitcoin … is widely used as a transaction mechanism,” she told CNBC correspondent Andrew Ross Sorkin at a conference. Instead, they fear the cryptocurrency will be used for “illegal financing”, as the use of Bitcoin is difficult to understand. She was also said to have criticized the amount of electricity required: “It is a very inefficient method of making transactions, and the amount of energy used to process these transactions is staggering.”
In addition, the volatility that cryptocurrencies is subjected quite often has come under fire: “It is a very speculative asset and you know I think people should realize that it can be very volatile and I am concerned about the potential losses, that investors can suffer. American radio quoted Yellin.
Focus on faster and safer transfers
On the other hand, she drew attention to the ambitions of the Fed, as Yellen once presided over. The US Federal Reserve appears to be treating the issue of digital currencies as a means of payment – but none of the traded electronic currencies should be the focus of the Fed. Other governments are also interested in their own digital currencies, which – unlike most current cryp currencies – are regulated. “I think that could lead to faster, safer and cheaper payments, which I think are important goals,” Yellin told CNBC.
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