US Treasury Secretary-designate Yellen targets cryptocurrencies

US Treasury Secretary-designate Janet Yellen has expressed criticism of cryptocurrencies during a questioning before the Senate. Cryptocurrencies are a dangerous vehicle for financing terrorism.

In a video conference , the future US Treasury Secretary Janet Yellen answered questions from the Senate Finance Committee on January 19

The main focus of the hearing was on plans to help free the US economy from its corona economic crisis. But cryptocurrencies were also mentioned.

When asked by Senator Maggie Hassan about the importance the former President of the Federal Reserve attached to cryptocurrencies in the fight against terrorist financing, Yellen replied:

I think that a lot of cryptocurrencies, at least in terms of transactions, are mainly used for illegal funding and I think that we really need to investigate ways in which we can limit their use and ensure that money laundering does not take place through these channels.

The statements are given particular weight against the backdrop of the attack on the Capitol

As the blockchain company Chainalysis has proven , significant Bitcoin donations flowed from France to various right-wing extremist organizations that are said to have been involved in the storming of the parliament building.

But even without this incident, Yellen’s stance towards cryptocurrencies is by no means new. Bitcoin and Co. are being written off again and again as popular vehicles for money laundering and terrorist financing. It is still open whether Yellen will pay particular attention to the regulation of cryptocurrencies during her tenure. The economist has yet to be formally confirmed as finance minister by the Senate and would be the first woman ever to hold office.