US treasury secretary floats idea of digital dollar maintained by the Fed

Cointelegraph – by Turner Wright

Janet Yellen may be open to having United States regulators consider a digital currency, but she still seems to have strong concerns about Bitcoin (BTC).

In an interview for The New York Times’ DealBook DC Policy Project held on Monday, Yellen said it makes sense for the Federal Reserve to look into a digital dollar. Speaking to Andrew Ross Sorkin, the treasury secretary said a digital dollar maintained by the Fed could result in “faster, safer and cheaper payments,” but added there were “a lot of things to consider” before a possible rollout. She questioned how regulators would “manage money laundering and illicit finance issues” as well as the impact on banks and the Fed.

In addition, the treasury secretary criticized Bitcoin as a medium of exchange, not mentioning its use as a store of value:

“I don’t think that Bitcoin is widely used as a transaction mechanism. […] It’s an extremely inefficient way of conducting transactions, and the amount of energy that’s consumed in processing those transactions is staggering.”

Yellen spoke about cryptocurrencies and BTC prior to being sworn into office on Jan. 26. In her confirmation hearing to be treasury secretary, she called crypto a “growing concern” in the United States that is “mainly for illicit financing.” Her subsequent written statements reiterated these views connecting digital assets and illegal financing but also included that she planned to encourage the use of digital assets in the U.S. government for “legitimate activities.”

She is the first woman to be treasury secretary and previously served as the chair of the Federal Reserve under former U.S. President Barack Obama before leaving in early 2018. Yellen once called Bitcoin “anything but useful,” but she was largely silent on crypto and blockchain until being tapped by President Joe Biden.


One thought on “US treasury secretary floats idea of digital dollar maintained by the Fed

  1. I hope everyone tinkering with cryptos makes a fortune. I really do. I don’t have the balls. be assured of 2 things.. if .. (when) the lights go out everyone will have the same amount.. ZERO! second.. if obama can ban ak47s and close ALL led smelting plants in the US just by saying it.. you better bet your as the Fed could disappear Bitcoin if it was truly afraid of it. my thought is if the Fed acts all afraid and worried about it.. they’re trying to suck us into buying relying and depending on it.. then they can flip the switch and Poof. Gone. I don’t know if the Fed actually started all these crypto currencies but it’s certainly a possibility. either way.. they DO control if we even get to play.. if it was real.. as advertised.. Bitcoin headquarters would’ve “committed suicide” by now. just like any form of gambling.. play at your own risk. just be smart. there is no get rich quick plan. no panacea.

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