Janet Yellen, Secretary of the United States Department of the Treasury, has recognized, during an interview, that cryptocurrencies bring benefits to their users and that their innovation can be healthy to optimize payment systems.
Cryptocurrencies closed the week with gains of up to 30%, adding a lot of optimism due to the recent comments, somewhat reserved but positive, from the Secretary of the Treasury of the United States, Janet Yellen. During a interview On CNBC's flagship program on markets and business, Squawk Box, the current United States Secretary of the Treasury acknowledged that there is potential in cryptocurrencies.
Yellen, who until now has maintained a fairly tough and skeptical position towards crypto assets such as Bitcoin, said “There are benefits to cryptocurrencies”. Furthermore, he has acknowledged that “innovation in payment systems can be a healthy thing”.
Although Yellen also indicated that she is still somewhat skeptical of cryptocurrencies, her comments are undoubtedly a sign of the change in perspective on the crypto industry that is occurring in the current government administration.
A change of perspective on cryptocurrencies
In this regard, the executive director of the Blockchain Association, Kristin Smith, said that in recent weeks there has been a lot of evidence about this change in the bipartisan environment for cryptocurrencies.
In a tweet, Smith highlighted the regulatory proposal being prepared by Republican senator and Bitcoin enthusiast, Cynthia Lummis, together with Democrat Kirsten Gillibrand; in addition to the letter from Representative Tom Emmer sent to the Senate and the executive order that President Joe Biden signed this month, with a view to regulating cryptocurrencies in the country.
All of these stocks are good examples of the growth and maturity that cryptocurrencies have gained in recent years; although, as Smith explains, they do not mean that cryptocurrencies enjoy unbeatable support across the political spectrum.
“It means that those who want to learn/participate/support are finding ways to do so”said Smith, who has led a large number of initiatives through the Blockchain association, in order to improve the public policy environment that allows cryptocurrencies and the blockchain industry, in general, to thrive in the United States.
Yellen talks about benefits of Joe Biden's executive order
For Yellen, the most important role that cryptocurrencies are currently playing is in the investment sector. This was stated in the interview in Squawk Box, indicating that it is an industry that has grown by leaps and bounds in recent years.
The current Treasury Secretary also spoke about President Biden's cryptocurrency-focused executive order, which will help create an efficient regulatory framework to establish the foundation on which the crypto industry will be built and overseen in a healthy manner in the country. This order is focused on supporting responsible innovation, prioritizing financial stability, investor security and combating illicit activities, and could result in substantial benefits for the nation, consumers and businesses, she said.
Cryptocurrencies as payment and investment alternatives
Janet Yellen's recent comments come a few days after statements by Larry Fink, CEO of BlackRock, about the future of the crypto industry.
Fink has considered that the economic consequences of the war between Russia and Ukraine will lead cryptocurrencies to gain greater momentum as alternative means of payment and settlement tools. In relation to governments, he indicated that they will begin to reevaluate their monetary dependencies and think about the potential that cryptocurrencies and digital assets offer to improve the settlement of international transactions, among many other things.
Also, the CEO of Credit Suisse, Zoltan Pozsar, accurate at the beginning of March that the recent war will give way to a new global financial order, where cryptocurrencies like Bitcoin could be winners.
Current progress of crypto regulation in the world
In recent weeks, several initiatives have been developing in the United States and other parts of the world related to the adoption and regulation of cryptocurrencies.
Currently, countries such as Colombia, Mexico, Ecuador, Panama, Cyprus, among others, are considering the possible adoption and/or regulation of cryptocurrencies to boost the digital economy, attract capital and innovation, and accelerate their development. Others such as El Salvador, the United Arab Emirates (Dubai), Brazil and Ukraine have already taken actions to regulate the crypto industry and continue at the forefront of this technological innovation.
Russia has even considered the possibility of trading oil and gas using bitcoin for payments, the chairman of the State Duma energy committee, Pavel Zavalny, reported this week.
Continue reading: Cryptocurrency market cap rises 9% in the last 7 days
