- Janet Yellenconsidered to be a nominee for The Head of The Treasury Department by Joe Biden
- She seems to have a different opinion on cryptocurrency
- she is not a big fan of cryptocurrency as she finds it as a gateway for illicit activities
WHO IS JANET YELLEN?
Janet Yellen is an American economist who was the chairman of The Federal Reserve’s chairman post and was the first lady ever to hold the position. Before it, she worked as a professor at the Haan school of business at the University of California, Berkeley. Recently she was nominated for the post of Head of the Treasury department by the recently elected president of the United States, Joe Biden.
RESPONSE AND REASON OF YELLEN
Janet Yellen has referred to all the crypto platforms that it isn’t a bit safe and concerned. Janet Yellen considers the fact that blockchain, even though being a widespread technology, has side effects of its own. Blockchain does not require user identification, which most of the conventional banking systems are robust. This paves the way for cyber crimes leading to insecurities and disruptions in the economy. This might be the main reason for Janet Yellen not being dear to cryptocurrencies.
MEASURES TO BE TAKEN
Since the networks in a blockchain are not under users’ jurisdiction, the Treasury Department in Trump’s administration has taken some measures to avoid such faults. Transactions above $10,000 are to be recorded in the blockchain ledger mentioning the identity of the person initiating the transaction.
Janet Yellen is likely to consider these rules by either accepting them as they are or adding a tint of her experience. Janet Yellen also commented on Bitcoin during her term as the Head of Federal Reserve that Bitcoin had only some of its transactions in proper terms, but most of its transactions are mostly in the name of alleged illicit activities. She also said that the Federal Bank would not interfere in Bitcoin dealings and regulations.
COMMENTS ON CRYPTOCURRENCY
Bitcoin and other cryptocurrencies have faced massive rejections from various people like Warren Buffet, ECB president Christine Lagarde. These people have considered Bitcoin and crypto as means of money laundering activity. Warren Buffet commented that criminals wouldn’t need their targets to carry cash, as they can steal their money online.
Cryptocurrencies do not have a physical form and are hence difficult to track, making it easier for many criminals.
Many countries have also taken measures to impose regulations on the usage of cryptocurrency. The FCA of the UK has issued a ban on crypto-based exchanges. Hence, the above comments show that even though crypto has gained popularity, governments worldwide think of adopting methods to safely access them.
After Tuesday, it will be seen whether the rules mentioned earlier would continue or new rules would be framed either for crypto development or its regulation.
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