US Treasury Secretary Highlights Cryptocurrency Potential

US President Joe Biden's pick for Treasury Secretary Janet Yellen said that cryptocurrenciesand digital assets have the potential to "improve the efficiency of the financial system."

"Bitcoin and other digital assets and cryptocurrenciesenable financial transactions all over the world. Like other technological advances, they have potential benefits for the United States and our allies. At the same time, they provide opportunities for states and non-state actors seeking to bypass the existing financial system and undermine American interests. For example, China's central bank has just released its first digital currency. "- said in the text prepared by Yellen in response to questions from the US Senate Finance Committee. ...

Before that, after a virtual hearing inYellen made headlines on the US Senate Finance Committee with the words that cryptocurrencies are becoming a problem for the country and are being used "mainly for illegal financing." In her opinion, the US government needs to "reduce" the use of cryptocurrency as a measure to combat money laundering.

However, her written statement, published onSenate Finance Committee website suggests that Yellen's views on cryptocurrency are not so negative. Emphasizing the need to restrict the use of cryptocurrency for “malicious and illegal activities,” she noted that she plans to encourage the use of digital assets for “legitimate activities”.

«I believe it is important that we consider the benefits of cryptocurrencies and other digital assets, as well as their potential to improve the efficiency of the financial system.»Yellen said.

The future finance minister also stated thatwants the United States to be a "digital asset and financial technology leader." She will seek to help develop a regulatory framework for cryptocurrency "and other fintech innovations" in conjunction with the Federal Reserve Board.

Formerly the administration of the new US President JoeBiden froze the proposals of the previous administration, including the establishment of additional control when withdrawing cryptocurrencies from exchanges to users' own wallets.

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