Yellen Points to Possible Benefits of Crypto

Is U.S. Treasury Secretary Janet Yellen coming around on cryptocurrency?

A noted critic of bitcoin, Yellen appeared to take a more positive tone Friday (March 25) in an interview with CNBC’s Squawkbox.

During the interview, host Andrew Ross Sorkin mentioned Russia’s recent announcement that it could begin accepting bitcoin for energy payments.

Read more: Biden’s Executive Order Set to Fast-Track Crypto Policy

“What does that say to you about where we are in the crypto conversation?” Sorkin asked.

Yellen responded that crypto had grown to the point that it is playing an important role in many Americans’ investment decisions, and noted the Biden administration recent executive order asking the Treasury and other agencies to come up with crypto regulations.

As to whether she’s less skeptical about cryptocurrencies, Yellen said there were still “valid concerns” when it comes to the digital tokens.

“Some have to do with financial stability, consumer investor protection, use for illicit transactions and other things,” she said.

“On the other hand, there have been benefits from crypto and we recognize that innovation in the payment system can be a healthy thing. We would like to come out eventually with recommendations that will create a healthy environment for innovation.”

Read more: Yellen: Biden’s Crypto Executive Order Strikes Innovation-Risk Balance

That sentiment echoes a statement Yellen made earlier this month soon after Biden issued his order. She said the president’s approach to digital asset policy and its support of “responsible innovation” could deliver “substantial benefits for the nation, consumers, and businesses.

In addition, Yellen said the executive order also addresses risks connected to illicit finance and how to better safeguard consumers and investors. The policy also addresses prevention of threats to the financial system and economy as a whole.

The Treasury will work will other agencies to issue a report on the “future of money and payment systems.” The Financial Stability Oversight Council will look at “potential financial stability risks of digital assets” and determine if additional safety measures are necessary. Global partners will also be included to “promote robust standards and a level playing field.”