US Treasury Secretary Yellen’s “Bitcoin” Warning

US Treasury Secretary Janet Yellen described the cryptocurrency as “inefficient” and “speculative,” and claimed that Bitcoin is often used for illegal financing.

Yellen made evaluations on the economic agenda at an event organized by The New York Times.

Noting that it must be ensured that those most affected by the crisis caused by the new type of corona virus epidemic (Covid-19) are not permanently injured, Yellen said: “I think we have more financial space than before and we should consider using it accordingly. to the environment of interest rates “.

Regarding whether US President Joe Biden’s $ 1.9 trillion economic support package will be successful, Yellen said, “Success for me is that we can go back to pre-epidemic unemployment levels and see re-employment. of those who lost their jobs, especially in the service sector. ” used expressions.

Emphasizing that the Treasury minister’s most important task is to ensure that the country is on a sound financial path, Yellen said that failing to make the necessary expenses to get the economy back on track will be a cost.

“I am concerned about the loss that investors may suffer”

Referring to the tax regulations, Yellen explained that Biden does not prefer the wealth tax, such a tax will have serious implementation problems and the administration wants to increase the corporate tax to 28%.

Stating that an increase in capital gains tax would be worth considering, Yellen stressed that the impact of the tax situation on ordinary investors should be closely examined.

Yellen also made evaluations on Bitcoin and said:

“I don’t think Bitcoin is widely used as a transaction mechanism. I am afraid that it is often used for illegal financing. It is an extremely inefficient way to process transactions, and the amount of energy consumed to perform these transactions is surprising. It is a highly asset speculative. I think people are aware that it can be extremely volatile. I am concerned about the potential losses investors may suffer. “

Bitcoin, which showed a rapid rise last week, fell into the new week. The price of Bitcoin, which topped $ 58,000 over the weekend, dropped below $ 50,000 on Monday.


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