US Treasury Secretary Janet Yellen made important statements in her speech on digital assets.
Yellen said in her speech that the digital dollar could become “a reliable currency comparable to cash.”
Speaking at the university event, Yellen emphasized that perceptions about crypto are of an extremely different dimension, noting that this is often the case with “transformative” technology:
“Some advocates (crypto advocates), he says technology is such a radical and useful transformative that the government should step back completely and allow the innovation to be implemented directly.
Skeptics, on the other hand, see limited value in this technology and related products, arguing that government should take a much more restrictive approach”
Yellen focused much of her talk on CBDCs :
“The evolution of our currency has been a dynamic process that has taken place over the centuries. Uniform currency today has greatly benefited monetary sovereignty, economic growth and financial stability Our approach to digital assets must be driven by the purpose of currency appreciation.
Some have suggested that the CBDC could be the next evolution in our currency. A recent Fed report initiated a public dialogue about the benefits and risks of CBDCs”
Yellen reviewed the financial system impact of a potential CBDC design, its ability to address financial crime and national security questions. He stressed that it needs to address issues such as privacy implications, the ability to address macro policy, fiat currencies, stablecoins, and how they can interact with other CBDCs.
Highlighting the executive order of US President Joe Biden on digital assets, Yellen said that any potential CBDC should support the dollar’s role in international markets.
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