145
The US treasury seems to be highly in favor of a US Central Bank Digital Currency (CBDC) over other digital assets like Bitcoin. Treasury secretary Janet Yellen has stated that CBDCs and stablecoins could be able to unseat Bitcoin and other cryptocurrencies as they are better suited for widespread use.
Treasury secretary makes case for CBDCs
Yellen said this while delivering her first-ever speech dedicated to cryptocurrencies at the American University’s Kogod School of Business Center for Innovation.
The US regulatory bigwig is confident about her stance and points to the volatile nature of cryptocurrencies. Combined with high transaction fees and low transaction throughput of blockchain technology, Yellen does not see cryptocurrencies being used for everyday purchases. This is why fiat-pegged and digital fiat will have the upper hand.
Other digital assets – like stablecoins or potential Central Bank Digital Currencies – could succeed at being more widely used as a means of exchange, raising potential benefits and risks, she said.
Yellen also touched on the US’s crypto policy, innovation, and regulation. Highlighting the recently signed executive order, she revealed that the Biden administration set to embrace digital assets and recognizes its growth.
Essentially, she stated that crypto was part of a larger trend that is the digitization of finance. She also acknowledged the potential of crypto to make the finance industry cheaper to operate and more efficient by cutting out the middleman and not requiring trust in third parties.
Regardless, the nascent industry comes with dangers she shared. This led to her reiterating the need for more crypto regulations in the US to prevent fraud and scams and to also tax the industry appropriately.
US crypto regulations taking shape
Yellen’s official remark on the crypto industry has been given impetus by the recently signed executive order by President Biden. The EO directed several federal agencies to study all aspects of the impact crypto can have on the US.
Other US market regulators including the SEC and the CFTC have also been calling for greater regulation of crypto. In prepared remarks delivered at an event hosted by the University of Pennsylvania Carey Law School, SEC chair Gary Gensler called for collaboration between his commission and the CFTC, especially for regulating crypto exchanges.
He opined that the framework for regulating crypto had to be more robust, more rules need to be introduced, and crypto should in no way be given preferential treatment.
- Trending
- Price Analysis
- Breaking: EU Tightens Crypto Sanctions Against Russia and Belarus
- These Top Altcoins Are Expected To Surge On Institutional Demand
- Just-In: Stablecoins Present “Bigger” Economic Threat, Says India’s Reserve Bank
- Bitcoin (BTC) Price Is Set To Rally On These Two Key Factors
- NEAR Protocol ($NEAR) Rallies 24% To Near All-Time High, Here’s Why
- AVAX Shoots 7% As Luna Foundation Guard Adds Avalanche to the UST Reserve
- Strike Integrates With E-Commerce Giant Shopify to Facilitate Bitcoin (BTC) Payments
- Breaking: Senator Kempis Rallies To Make Bitcoin Legal Tender In Mexico
- Breaking: Slovenia Introduces 5% Flat Crypto Tax
- Just-In: SEC Grants Two New Applicants Rights To Issue Bitcoin Futures ETFs
- Kava Price Prediction: Bulls Eye $5 Breakout With 21% Jump To $5.6
- Ethereum Price Prediction: ETH Price Struggles Below $3,300; Is Time To Long?
- Bitcoin Price Prediction: BTC Lost Its $45000 Support; What Next?
- NEAR Price Prediction: Keep Eyes On Record Highs Around $20.50
- LUNA Price Prediction: RSI Bearish Divergence Hints At $90.0 Next
- Cardano Price Prediction: ADA Price Challenges 50-day EMA; Set To Test $0.95?
- Cardano Price Prediction: ADA Price Challenges 50-day EMA; Is $0.95 A Buy Price?
- Ripple Price Prediction: XRP Price Tests Ascending Trend Line; Time To Enter?
- Bitcoin Price Prediction: BTC Price Hovers Near 50-day EMA; Is $40,000 Possible?
- SHIB Price Prediction: Double Top Pattern Leads SHIB Price Back To 0.0000228 Mark
