Former Federal Reserve Chairman Yellen "Bitcoin is not my dish"
Janet Yellen former chairman of the Federal Reserve Board delivered a speech at a meeting of the Association of Chartered Financial Analysts (CFA Montreal) in Montreal. In the speech Yellen mentioned her dislike of Bitcoin that Bitcoin's trading volume is small related to terrorist activities and money laundering and that the efficiency for payment is too low.
Former Federal Reserve Chairman Yellen "Bitcoin is not my dish"
Source CFA Montreal
Yellen Bitcoin is related to terrorism and money laundering
A video shared by Francis Pouliot on Twitter shows that Yellen expressed her views on Bitcoin to the financial analysts at the CFA Montreal meeting
"I am not a fan of Bitcoin. I have my reasons." Faced with many financial/banking elites Yellen talked about it and the video lasted more than five minutes.
Former Federal Reserve Chairman Yellen "Bitcoin is not my dish"
Francis Pouliot Tweets
Yellen mentioned the relationship between bitcoin and money laundering in his speech. In fact any obedience to cryptocurrencies and some understanding (financial analysts) knows that so is the legal currency. A set of data on money laundering shows that Yellen’s perception of digital currency is biased.
A report released by data security company CipherTrace shows that cryptocurrency money laundering is expected to reach $1.5 billion in 2018. From the perspective of digital currency this figure seems to be a serious problem. However money laundering through legal currency is another concept. It is alleged that a single Danish bank (Danske Bank) was suspected of laundering $234 billion (French) from 2007 to 2015 which is equivalent to the total market value of cryptocurrencies.
According to the United Nations Office on Drugs and Crime the annual global money-laundering amount is about 2% to 5% of GDP ranging from about $800 billion to $2 trillion. Money laundering in cryptocurrency accounts for 0.075-0.18% of this figure. Bitcoin is just one of more than 2000 digital tokens in the secondary market and its role in money laundering is even smaller.
Former Federal Reserve Chairman Yellen "Bitcoin is not my dish"
In his speech Yellen also told the audience that Bitcoin is not suitable to serve as a relatively stable value standard considering that the volatility is too large.
In fact with the birth of Bitcoin the value of this emerging technology has continued to increase in recent years and many analysts expect Bitcoin to continue to rise. US venture capitalist Tim Draper believes bitcoin prices will reach $250000 William Hill Australia Company CEO Tom Waterhouse saw a high of $280000 and Vimba CEO Sam Blackmore even thought it would rise to $600000.
This may be related to a personal perspective.
Yellen also mentioned the bitcoin/dollar (BTC/USD) price in his speech. Many people think that the dollar is problematic and may disappear in the future. Goldman Sachs chief executive Lloyd Blankfein said that the currency is very valuable because the central bank authorities are making people use cash. According to this logic if cryptocurrency becomes the choice of the mainstream society then the legal currency may withdraw from the stage.
Yellen talks about bitcoin before leaving office
Yellen has always been pessimistic about Bitcoin.
In the early morning of December 14 2017 at the press conference after the Fed meeting on interest rates the outgoing Yellen was asked three times in his curtain call about issues related to Bitcoin and digital currency. It is very frank and does not hide her negative view of Bitcoin.
Former Federal Reserve Chairman Yellen "Bitcoin is not my dish"
The outgoing Federal Reserve Chairman Yellen at the press conference
Yellen said that cryptocurrencies such as Bitcoin only play a very limited role in the payment system. It is neither a stable value storage tool nor a legal tender but a highly speculative asset.
She also said that for Bitcoin the Fed does not assume any regulatory duties - except to ensure that banks regulated by the Federal Reserve manage any interaction with Bitcoin market participants in an appropriate manner and that banks can properly monitor money laundering. Implement the requirements of the Bank Secrecy Act (mainly related to anti-money laundering).
Yellen received 0.003 bitcoins
On the second day of Yellen’s speech in Montreal on October 30th something interesting happened which caused the former central bank governor who had been not interested in Bitcoin to re-interact with Bitcoin.
According to the news released by CoinDesk on October 31 the day after Yellen’s speech at the CFA Montreal Association the founder of Bitcoin’s Biterica Raz Suprovici passed the mailbox of Yellen’s University of California at Berkeley. She presented 0.0031642 BTC (about 20 US dollars).
Former Federal Reserve Chairman Yellen "Bitcoin is not my dish"
Coin News Channel Tweets
Yellen subsequently said that he had received the gift but had not studied it further. "I received a bitcoin gift this morning and I have been very busy since then so I didn't study it further." Yellen also said that she had nothing to add to the comments on Bitcoin earlier this week.
Suprovici told CoinDesk that his move was to help Yellen learn more about Bitcoin and he thought the gift was the best way. “From the point of view she expressed in her speech she never seems to have bitcoin” Suprovici said. “People are afraid of things that are always unknown. I hope that when Yellen logs in the bitcoin wallet with her ID and password. When she finds out that it is like an ordinary online bank account. Her property (money) is in the account in her control she can spend it at any time... I hope this will make her The new technology of cryptocurrency is open."
“Maybe all the policy makers can give a bit of bitcoin gifts” Suprovici revealed to CoinDesk.