“Bitcoin at this time plays a very small role in the payment system. It is not a stable source of value and it does not constitute legal tender. It is a highly speculative asset.”
Yellen had an interview on CNBC and she was answering the questions which were asked by the reporter.
“The Fed doesn’t really play any regulatory role with respect to bitcoin, other than assuring that banking organizations that we do supervise are attentive, that they are appropriately managing any interactions they have with participants in that market, and appropriately monitoring anti-money laundering, bank secrecy act responsibilities that they have.”
Yellen claimed that some global central banks are looking at experimenting with their own digital currencies, but that is not something the Federal will pursue in the future.
“I really want to caution, this is not something the Federal Reserve is seriously considering at this stage, while we’re looking at research on this topic, there are, I think to my mind, limited benefits from introducing it, a limited need for it and some substantial concerns.”
Yellen was talking at a press conference regarding the central bank’s decision to increase the interest rates a quarter point. This is her final such press conference before she is going to be replaced by President Trump’s person Jerome Powell next year.
She also included that the risk to U.S financial institutions was “limited” even bitcoin’s price was dropped.
Bitcoin has crossed more than 2,000 percent within last 12 months and was last at around $16,500. Future of bitcoin began trading for the first time on a major exchange Sunday, helping to boost this year’s rally as the emerging market tries to go for legitimacy.