U.S. Treasury Secretary Janet Yellen has spoken again about Bitcoin and the challenges that global powers face today in terms of financial markets. Yellen speaks again about BTC At the New York Times DealBook conference, Yellen questioned the technical and economic feasibility of Bitcoin. - I don't think Bitcoin, as I said, is widely used as a transaction mechanism. (...) It's an extremely inefficient way to conduct transactions. And the amount of energy used in processing these transactions is staggering," she said. Yellen is not entirely right, however. For example, while the speed of transactions on Bitcoin's network is much slower than the bandwidth of payment companies' platforms like Visa, cryptocurrency users are able to send digital assets within minutes for really low rates. However, the Treasury secretary also added that she is also concerned about the losses that Bitcoin investors may suffer due to the volatility of the cryptocurrency's price. - It is a highly speculative asset. And you know, I think people should be wary of the fact that it can be very volatile. I'm worried about the potential losses that investors could incur," she said. CBDCs are needed As for central bank digital currencies (CBDCs), Yellen says she thinks they will help promote "financial inclusion" in the U.S. - We have a problem with financial inclusion. Too many Americans don't have access to payment systems and bank accounts. And I think that's something that a digital dollar, a digital central bank currency, could help with. I think it could result in faster, more secure and cheaper payments," she explained. Yellen cautioned, however, that there are concerns that need to be addressed before the digital dollar is launched. - There are a number of issues with central bank digital currencies that need to be examined. What would be their impact on the banking system? Would it cause a huge flow of deposits from banks to the Fed? Would the Fed deal with retail customers, or would it try to do so at the wholesale level? Are there concerns about financial stability? How would we deal with money laundering and illicit finance? - she added. However, as she commented on the thought, "it's absolutely worth looking into ". Tags bitcoin btc Janet Yellen
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