Janet Yellen Throws Shade As Bitcoin Turns 10 Years Old
(Kitco News) - Cryptocurrencies have no place inthe global economy as a legitimate unit of money, this according to JanetYellen, former Chair of the Federal Reserve.
“I am not a fan of bitcoin, let metell you why,” Yellen told an audience during a live panel at the 2018 CanadaFinTech Forum in Montreal on Monday.
Yellen said that cryptocurrencieslike bitcoin lack the necessary characteristics typical of fiat money.
"It has long been thoughtthat for something to be a useful currency, it needs to be a stable source ofvalue, and bitcoin is anything but. It's not used for a lot of transactions,it's not a stable source of value, and it's not an efficient means of processingpayments. It's very slow in handling payments. It has difficulties because ofits very decentralized nature," she said.
Yellen’s comments were made on the eve of bitcoin’s 10-yearanniversary; October 31st, 2008, marks the day the first bitcoin whitepaperwas published by Satoshi Nakamoto, a pseudonym whose real identity is yet to beidentified.
The paper outlined the use of a “purely peer-to-peer versionof electronic cash would allow online payments to be sent directly from oneparty to another without going through a financial institution,” which formedthe basis of blockchain integration in the economy.
Since its inception, bitcoin has been one of the fastestgrowing but most volatile investable assets in the world. $1 invested inbitcoin in July, 2010 would be worth more than $320,000 at bitcoin’s height inDecember, 2017.
However, bitcoin has since fallen more than 60% since lastyear’s record highs.
As to whether or not the Federal Reserve would embracedigitcal currencies, Yellen said she thinks it is an unlikely scenario. Sheadded that the enthusiasm for a digitcal current at the central bank during hertenure was “not very high.”
Yellen noted that a central bank digital currency wouldleave the global system of payments vulnerable to terrorism and become “anobvious target for cyberattacks.”
By David LinFor Kitco News
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dlin@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.