US secretary of Treasury Janet Yellen says that digital currency can succeed if it is properly studied, but Bitcoin is an inefficient asset.
The US treasury’s recently appointed secretary says that Bitcoin is often used in illegal activities and is not a reliable form of payment.
Surprisingly, she gave her comments when the price of Bitcoin came down to $48,000.
Yellen on Digital currency and Bitcoin’s Inefficiency
An event was conducted by the New York Times at the DealBook DC Policy Project; Yellon commented on the post-COVID19 economic recovery of the US. She also spoke about digital assets, and she accepted that digital currency is a good option for faster and cheaper payment methods.
Still, their current form involves many issues, and they are not ready for regular use. Their main issue is consumer protection and money laundering.
When it came to Bitcoin, she directly said that it is ineffective for making transactions. She also added that it is an unsafe asset.
In the NYT event, she gave a hint that the US Federal Reserve may join other banks in the growing trend of central bank digital currency. The US was thinking to join this idea in the past few years but was unsure about it. Meanwhile, China has made successful progress in this trend, and they are testing their own version of digital currency.
BTC Price Sinks to $48,000
Yellen gave his speech when the price of Bitcoin was sinking. There was a new record for the digital currency because its price went above 58,000 dollars. But suddenly there was a decrease of about $11,000 in its price.
In just a few hours, the price of BTC came to $47,500. But, you cannot predict the future as it’s price is again rising.
Other crypto coins also collapsed. Ethereum plummeted below $1700, BNB dropped down to $250, and Litecoin plunged to $200. Thus, within a day, the digital currency market faced a loss of more than $200 billion.
But the market is coming back to its original state as it is a common phenomenon in the crypto space. The Bitcoin experts still have their belief in its efficiency.