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Yellen attacked bitcoin as a payment method: it is little used and inefficient

15 minutes. The Secretary of the Treasury of the United States (USA), Janet Yellen, assured this Monday that bitcoin continues not to be established as a payment method and is “an extremely inefficient way to carry out transactions.”

His statements come after the cryptocurrency soared in the past weeks and was adopted by companies like Tesla for certain operations.

In a virtual event held by the newspaper The New York Times, Yellen considered that “The amount of energy that is consumed when processing transactions” with bitcoin is “staggering”.

“I don’t think bitcoin is a widely used transaction mechanism,” Yellen noted.

There are conditions

However, he was in favor of continuing to explore the possibility of a “digital dollar.” Of course, dependent on the Federal Reserve (FED) and based on technology blockchain like the rest of the cryptocurrencies.

In the opinion of the former president of the FED, a digital dollar could be “faster, safer and cheaper to make payments.” Nevertheless, there are conditions that must be resolved before.

Yellen said that doubts should be raised about the impact on the banking system. The reason: it could mean the outflow of deposits from traditional banks to the FED. In his opinion, perhaps the most appropriate thing is that the central bank is only a wholesaler of this type of digital payment method.

He also recalled that it is necessary to resolve issues about the stability of the financial system and how this new cryptocurrency issued by the US government would affect the fight against money laundering and capital evasion.

The price of bitcoin fell below $ 50,000 on Monday, losing more than 10%. Tesla founder Elon Musk, turned online guru on issues of cryptocurrencies and other assets favorite on internet forums, said it was overvalued.

So far this year, bitcoin has surpassed the $ 58,000 barrier. In addition, it has appreciated more than 80% thanks, among other things, to the fact that Tesla decided to invest in it.

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