Janet Yellen called bitcoin as “a highly speculative asset” that “doesn’t constitute legal tender” in her last press conference as Fed Reserve Chair. She is the Chair of the Board of Governors of the Federal Reserve System, previously serving as Vice Chairwoman from 2010 to 2014.
Yellen was talking to the reporters on Wednesday which is her last press meeting as her terms come to an end in February. During that time the topic of bitcoin came in between, and she opinioned that the bitcoin is a highly speculative asset.
She also commented that in the American payments system the Bitcoin is not a fixed store of value and makes for a “very small role”.
She said that:
“I would simply say that Bitcoin at this time plays a very small role in the payments system. It is not a stable store of value, and it doesn’t constitute legal tender. It is a highly speculative asset.
The Fed doesn’t play any regulatory role concerning Bitcoin other than assuring that banking organisations that we do supervise are attentive that they are appropriately managing any interactions they have with participants in that market and appropriately monitoring AML acts and other responsibilities that they have.”
One reporter has asked Yellen that, “Has there been a directive about bitcoin to the banks and their dealings with bitcoin from the Federal Reserve?” And her reply was;
“I don’t believe there has been anything specific about that,” she replied. “Generally, banks have bank secrecy act, AML responsibilities and this applies to bitcoin as it does with every other realm.”
Some of the earlier comments made by Yellen about the bitcoin is must be read. According to the report of CCN in 2014, Yellen made a statement about the bitcoin that it as a “payment innovation” which is taking shape outside the banking industry. And she added one more thing that the “FED does not have the power to administrate or handle the Bitcoin in any way”.
Federal Reserve Annual Meeting, a three-day event organised this year which was attended by the representatives from over 90 central banks. On this occasion, Yellen has spoken and persuaded her counterparts to make a study in blockchain technology.
Bitcoin has been garnering attention on both Wall Street and Main Street in the latter months of 2017. The cryptocurrency has soared more than 1,500% this year.
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