Janet Yellen, who is expected to lead the US Treasury Department for the incoming Joe Biden administration, raised concerns around the use of Bitcoin (BTC) and cryptocurrency by terrorists and money launderers.
During the Senate confirmation hearing, the Treasury secretary nominee and former Federal Reserve chair highlighted cryptocurrencies are a particular concern for law enforcement officials charged with policing money laundering and other illicit finance.
“Cryptocurrencies are of particular concern. I think many are used at least in a transaction sense mainly for illicit finance,” she said, adding that the US government should examine new ways to curb money laundering and “tech-terrorist financing” from occurring via cryptocurrency platforms.
In her former post as Chair of the Federal Reserve from 2014 to 2018, Yellen has been skeptical about cryptocurrency, and in particular, Bitcoin, the largest cryptocurrency by market cap. In the past, Yellen described Bitcoin as a “highly speculative asset”, claiming that it doesn’t constitute legal tender.