Even before the Trump Administration executives exited their offices, the crypto community raised concerns about Joe Biden’s Treasury Secretary choice, Janet Yellen. The community is aware of her previous opinions on cryptocurrency and how she does not believe in the innovation.
Experts envisioned the Trump administration being very stringent on cryptocurrency regulations, primarily when bad actors use it to commit atrocities. She sees the digital asset as a threat because, according to her, criminals use the currencies for financing their crimes.
Recently, countries declared concerns about criminals using cryptocurrencies to finance crimes or launder money without authorities’ detection. With new KYC requirements, some countries can trace some harmful elements that used the innovation for malign and illicit purposes.
Janet Yellen speaks on terrorism financing
The US Senate Finance held a meeting recently with her in attendance. As the nominee for Treasury Secretary’s position, Maggie Hassan asked her questions concerning how she plans to stop terrorism financing when she takes office.
The Senator also asked for her approach on new financing technology, which criminals use to finance their activities. Hassan is certainly not a fan of cryptocurrencies, as he voiced out his concerns about the emerging tech. Yellen replied that the methods used to combat the problems would change with the innovation.
The nominee revealed that cryptocurrencies pose some concerns in America. She opined that those who use the medium use it mainly for illicit purposes. Yellen explained that new restrictions need to come for the digital asset’s use so that criminals would not use them to launder money.
As she voiced out years ago, the former Federal Reserve leader did not see the benefit in cryptos. Since she left her office after Obama’s exit, she chose not to speak on the technology. Sources suspect that Yellen will eventually take the seat as Treasury Secretary when the Senate finally approves.
Cryptocurrencies face new hurdles
The Trump administration was not so lenient on the digital asset because of its anti-money laundering laws, which form a prominent opposition against the widespread adoption of the blockchain-based technology. Since its creation, Bitcoin quickly gained an audience when it promised sole autonomy on one’s holding without intermediaries restricting transactions.
Another reason for its quick adoption is the Federal government’s excessive printing of money. Scarcity is a essential quality assets have to hold to be valuable. What is easily acquired would not hold much value, which is why gold and Bitcoin thrive when currencies lose value.
Fortunately, the candidate explained that her priority was assisting people and businesses affected by the global pandemic. The pandemic caused many economic problems for countries globally, where some nations had to increase taxation to have enough funds to run the government efficiently.
Unfortunately, poor citizens would suffer from more taxation, leading to increased poverty and unemployment rates. Interestingly, Yellen’s opinion on restricting the platform’s usage could mean that the Biden administration plans to create regulations of its own to reduce the possibility of money laundering.