Janet Yellen Rips Bitcoin, Calling It ‘Extremely Ineffective’

United States Treasury Secretary Janet Yellen issued a warning about the dangers that she believes Bitcoin poses to both investors and the public.

“Bitcoin is an extremely inefficient way of conducting transactions. The amount of energy that’s consumed processing those transactions is staggering”. Said Yellen at the 2021 DealBook DC Policy Project.

Janet Yellen also suggested that the US treasury department should begin researching and studying the merits of a digital dollar currency. Yellen noted that a digital dollar, maintained by the US Federal Reserve and based on a blockchain. “Could result in faster, safer and cheaper payments.”

Janet Yellen Has Serious Questions About Bitcoin

When it comes to Bitcoin, Yellen still has serious questions about its legitimacy and stability. “I don’t think that bitcoin … is widely used as a transaction mechanism,” she noted. “To the extent it is used I fear it’s often for illicit finance”.

Janet Yellen’s comments and concerns on crypto, mirror those recently spoken by European Central Bank chief Christine Lagarde. “For those who had assumed that it might turn into a currency — terribly sorry, but this is an asset. It’s a highly speculative asset which has conducted some funny business. Some interesting and totally reprehensible money-laundering activity,” Lagarde noted during an online Reuters event.

Meanwhile in India, the government has proposed a bill in the parliament that would ban all private cryptocurrencies. Enabling the launch of a digital rupee under the control of the Reserve Bank of India.

The volatility of Bitcoin remains a concern for Janet Yellen as well. Just today both Bitcoin and Ethereum saw massive price drops. Bitcoin has seen major highs and lows throughout its existence.

“It is a highly speculative asset and you know I think people should be aware. It can be extremely volatile and I do worry about potential losses that investors can suffer”.