Cryptocurrencies Have Been Used in Money Laundering, Says Janet Yellen

Janet Yellen, United States Secretary of the Treasury Department, said that Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term have been used to launder money. She added that the involvement of crypto assets in financing terrorism is a growing problem.

According to an official press release issued by the US Treasury Department, Yellen believes that new technologies like cryptocurrencies have potential but bad actors are misusing the digital assets, and there are many risks associated with the use of crypto-assets.

“The misuse of cryptocurrencies and virtual assets is a growing problem, too. I see the promise of these new technologies, but I also see the reality: cryptocurrencies have been used to launder the profits of online drug traffickers; they’ve been a tool to finance terrorism. From my time at the Fed, I know the crucial role your institutions play in combating crimes like these. The private sector invests enormous resources, finding ways to stop bad actors from misusing existing technologies. You also develop new ones,” Yellen said.

Finance Magnates earlier reported about a statement issued by Yellen in which she mentioned that Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term and other cryptocurrencies offer potential benefits to improve the efficiency of the financial system.

Yellen’s Stance on Cryptocurrencies

The former chair of the Federal Reserve changed her stance on crypto assets in recent months. Yellen’s remarks published by the Senate Committee on finance in January showed her positive stance on digital currencies, but her latest statement indicates that she has changed her tone on cryptocurrencies again. Yellen’s latest remarks about crypto assets came a few days after a report by the United Nations mentioned that cryptocurrencies are being used by terrorist groups to finance illegal activities.

“As the pandemic has moved more of life online, crime has moved with it. We’re seeing more and more sophisticated cyberattacks aimed at institutions that hold up our society: hospitals, schools, banks and even our government,” Yellen said during the inaugural US Financial Sector Innovation Policy Roundtable.