US Treasury Secretary Janet Yellen recently spoke about the work of Satoshi Nakamoto, the pseudonym used by the person or group of people who created the Bitcoin protocol. And at an event on digital assets held at the American University in Washington, she delved into the benefits and risks of using cryptocurrencies.
with his speech about bitcoin and other crypto assets, Yellen made it clear that she leans towards a more friendly position with these money technologies. This, after having condemned them for considering them conducive to the execution of transactions associated with illicit activities.
A person or group of people using the pseudonym Satoshi Nakamoto, proposed a decentralized peer-to-peer system for processing and making payments. A key challenge in digital payments is preventing the same assets from being double-spent, and the Bitcoin White Paper showcases a novel method of validating transactions using crypto adjusted to the so-called double-spending problem.
Yanet Jellen, speech on digital assets at American University.
Later, he mentioned the executive order mandated by President Joe Biden, which requires the Treasury and Commerce Departments, along with other agencies prepare reports on “the future of money” and the role that cryptocurrencies will play.
In this sense, Yellen said that these tasks that the institutions will undertake will be guided by six political objectives: the first of them is to protect users; the second is safeguard financial stability from the risk posed by cryptocurrencies.
The third objective is to mitigate national security risks; the fourth is to promote leadership and economic competitiveness, while the fifth is to promote equitable access to financial services.
Lastly, Yellen mentioned the goal of support responsible technological advances that take into account privacy protectionhuman rights and climate change.
The representative of the United States government believes that the work of the institutions will be carried out during the next six months, although part of the task will be based on the investigations that the Department of the Treasury has carried out. “I won’t predict where this work will take us, but that doesn’t mean we’re navigating without a compass,” he added.
He went on to highlight that the first lesson he has learned from money-centric innovations is that “our financial system benefits from responsible innovation from new technologies.”
This speech from Yellen It was cataloged by Michael Saylor, CEO of MicroStartegy as “a seminal milestone in the history of technology and marks the turning point for the worldwide adoption of bitcoin.”
Yellen friendly with bitcoin or paves the way for the digital dollar
Despite the above, in the final part of her speech, Janet Yellen again distanced herself from bitcoin when she delved into the plans that the United States has to develop a Central Bank Digital Currency (CBDC, for its acronym in English) or digital dollar.
In fact, he pointed out that this digital asset issued by the State would offer some benefits that crypto assets offer today. However, he clarified that it will be the report on the future of money that will present the design options for a CBDC.
And while studies are being done on what the digital dollar will look like, US agencies also design their regulatory policy for cryptocurrencies.
Our regulatory frameworks must be designed to support responsible innovation while managing risks, especially those that could disrupt the financial system and the economy. As banks and other traditional financial firms become more involved in digital asset markets, regulatory frameworks will need to adequately reflect the risks of these new activities.
Yanet Jellen, speech on digital assets at American University.
Some lawmakers want regulators to crack down on the industry because of volatility, digital mining’s impact on the environment, or its alleged use to hide illicit funds. This has raised concerns in the ecosystem, but as the government deepens its message of support for responsible innovation, some of those fears have been allayed.
Yellen also noted that, wherever possible, regulation for the cryptocurrency market should be “technology neutral” and guided by the risks associated with services provided to households and businesses.
It is not the first time that Yellen has expressed herself in a friendly way about bitcoin and other cryptocurrencies, because at the end of March, recognized that crypto assets can be beneficial for citizens. As reported by CriptoNoticias, the Secretary of the Treasury of the United States, during an interview assured that there are “benefits of cryptocurrencies”, while acknowledging that “innovation in the payment system can be a healthy thing”.
On the other hand, the representative of the United States government recognized that, in the face of investments by citizens, cryptocurrencies have been gaining more and more relevance.