U.S. Treasury Secretary Yellen said that Bitcoin is used for illegal financing to a certain extent, its application is inefficient, and Bitcoin is highly speculative, and investors should be careful.
Digital currency may lead to faster and cheaper payments, but many issues need to be studied, including consumer protection and combating money laundering.
Yellen told CNBC on Thursday that some parts of the U.S. stock market may require investors to exercise caution, NBC Business reported.
In response to the question raised by CNBC reporter, “Do you think it is reasonable to approach the historical highs of major U.S. stock indexes during the coronavirus epidemic and its related economic losses”, Yellen said in an interview with Closing Bell that she believes that it is possible to raise stock valuations given the loose monetary policy of the Federal Reserve. Understand.
Meanwhile, Bitcoin has fluctuated sharply in recent months, and the unit price of the world’s most valuable cryptocurrency exceeded $52,000 for the first time on Wednesday.
Yellen said that she believes that Bitcoin is a “highly speculative asset”, and pointed out that Bitcoin has been very volatile in recent years. When asked if she felt that regulation was needed, Yellen said that any action must be to protect investors.
“I think it’s important to make sure it’s not used as a tool for illegal transfers and that investors are protected, so I think it’s certainly important to regulate bitcoin trading institutions and make sure they comply with their regulatory responsibilities,” Yellen said.
The report pointed out that the application of cryptocurrencies in mature financial companies has generally increased recently.
MasterCard said last week that it intends to support certain cryptocurrencies on its official network, and BNY Mellon, the oldest bank in the United States, will launch a digital asset division later this year.