Janet Yellen Once Again Criticizes Bitcoin

The treasury secretary Janet Yellen has had previous takes on Bitcoin and cryptocurrencies at large. She has again criticized Bitcoin, stating that it is used mostly for illicit activities and it uses high energy. 

Same Janet Yellen – Different Opinion on Crypto

In a comment from journalist Andrew Ross Sorkin, Janet Yellen the US treasury secretary gave negative comments on crypto once more. She passed the comment at the New York Times’ DealBook DC Policy Project.

She said she doesn’t have great admiration for Bitcoin or cryptocurrency, stating that it consumes far too much energy. She also said it is used for illicit financing.

In her words, Janet Yellen said;

“I don’t think that Bitcoin is widely used as a transaction mechanism.”

When she was queried whether the treasury department need to look further into the asset aspect, she replied;

“To the extent it’s used, I fear it’s often for illicit finance.”

The Critics Respond

Janet Yellen had previously passed comments on cryptocurrencies, especially Bitcoin. Most of her comments had been negative. 

In response to her various claims on Bitcoin, Hailey Lennon answered on Forbes last month by saying Yellen’s narrative is flawed. 

She replied with the fact that, “The illicit finance line is an old saw, but it isn’t backed up by much in the way of hard data”

A report from blockchain tracking firm Chainalysis explained that criminal activity related to cryptocurrencies dropped from 2.1% to 0.34% from 2019. This figure suggests criminals have not been utilizing Bitcoin or other cryptocurrencies as Janet Yellen has been lauding it to be.

A report from Rand Corporation also attested to the fact above.

The report read that;

“an estimated 99 per cent of cryptocurrency transactions are performed through centralised exchanges, which can be subject to AML/CFT regulation similar to traditional banks or exchanges.”

An Expert’s View on Janet Yellen’s Assertion

Coin Metrics co-founder and chairman Nic Carter passed his comment on the words of Janet Yellen.

He mentioned that Bitcoin is not just a means for buying things. 

One of Yellen’s view is that Bitcoin is a  less sufficient way of transacting and that it takes a chunk of energy in the transaction process. Carter replied to this saying, transactions are not that energy consuming but rather mining process are.