One of America’s most accomplished economists, Janet Yellen, could become Biden’s secretary of the treasury.
This has been reported in the U.S. media. According to opinions at different times, the official believes that Bitcoin is a highly volatile asset.
Although her opinion about Bitcoin was, until recently, a bit reserved, the official is not unaware of the advantages of the Blockchain. Thus, in the same vein as other leaders, both in the U.S. and in other countries, she welcomes the Blockchain.
But, at the same time, she does not show much sympathy for the coins that are not under the control of the centralized system. One thing that is clear is that the 74-year-old veteran knows what this technology is all about, which could mean a major opening.
Is it true that Bitcoin is a risky asset?
Although Bitcoin is only a decade old, from its birth until now, it’s the best investment asset. During this year 2020, while all the markets remain in the doldrums, the most popular of the crypto currencies remain firm and their price is rising.
Dozens of large investors, who are looking for safe haven assets to protect their capital from the crisis, choose Bitcoin. It’s a level of maturity that the digital currency didn’t have at other times, but that now makes it one of the most traded assets on Wall Street.
Bitcoin has done its job and, throughout the year, has become by far the most profitable of the assets. The return is even higher than gold, which is the strongest refuge of value in human history.
Some analysts and the investors themselves who have benefited from cryptomoney, have called it „digital gold“. Certainly, Bitcoin’s market capitalization makes it a volatile asset, but that volatility has an irreversible tendency to die out.
#Bitcoin is better at being gold than gold – and not just incrementally, but by an order of magnitude or 10X better. pic.twitter.com/rhKOQD44AZ
– Tyler Winklevoss (@tyler) September 21, 2020
The Fed is actively working on a digital dollar
This is Yellen’s opinion on the main cryptomone
In a work published by CoinDesk, the quotations in which the probable future secretary of the Treasury, refers to the cryptomoney, are compiled. Apart from considering Bitcoin as a dangerous asset, Yellen praises the Blockchain technology and assures that the Federal Reserve has no power to decide anything about the mentioned digital currency.
October 2015: „We don’t believe that Bitcoin’s popularity is related to public opinion about Federal Reserve policies.
December 2017: „It’s not a stable value reserve and it’s not legal tender either. Bitcoin is a highly speculative asset.
October 2018: „I don’t sympathize with Bitcoin and say the reason: there are many transactions that are handled by it and many of them are illegal.
Regarding the regulations
On the other hand, as far as regulatory policies related to Bitcoin are concerned, Yellen, while president of the Federal Reserve, also had the opportunity to refer to the pioneering cryptomoney.
February 2014: „The Fed does not have the authority to supervise or regulate Bitcoin in any way.
October 2015: According to her belief, financial regulators „should not suppress innovation.
December 2017: The Fed’s role is not to regulate Bitcoin, but to ensure that the financial institutions it supervises are up to date on anti-money laundering laws, he said.
During one of his appearances in 2017, behind Yellen, who calls cryptomoney a speculative asset, appeared the „buy Bitcoin“ poster.
Bitcoin Whale qualifies as threat to regulators
Yellen’s view of the Blockchain
But if the official’s opinion about Bitcoin is to consider it as a speculative and risky asset, she has a different vision with respect to Blockchain. For the ex-president of the Federal Reserve, the technology of the chain of blocks, must be taken advantage of to the maximum.
Thus, in 2016 she affirmed that Blockchain is called to play an important role in updating the payment system, on the one hand. On the other hand, to be part of a better operation in the management of the companies and the conduction of business.
A year later, he reaffirmed his words and affirmed that the Blockchain „is a very important new technology“. The same, he said, could have implications on the way the
