Possible Bitcoin price crash will not affect banks | Janet Yellen States
Janet Yellen, the chair of the U.S. Federal Reserve System, sent a warning to investors over bitcoin, saying that it isn’t a stable store of value.
Yellen said in a press conference:
“It is not a stable store of value and it doesn’t constitute legal tender. It is a highly speculative asset, and the Fed doesn’t really play any role, any regulatory role, with respect to bitcoin other than ensuring banking organizations that we do supervise are attentive… that they’re appropriately managing any interactions they have with participants in that market, and appropriately monitoring Anti-Money Laundering, Bank Secrecy Act, you know, responsibilities that they have.”
Yellen believes a crash in bitcoin's price will not affect banks
Janet Yellen held a press conference to reveal the central bank’s decision to raise interest rates a quarter point. To be added that this was the U.S. Federal Reserve System chief’s last press conference, because she will be replaced by Jerome Powell next year. Powell is Donald Trump’s nominee for this position. It seems that Janet Yellen was very open and she accepted to talk about bitcoin and other cryptocurrencies with the reports.
Yellen declared that she isn’t concerned over how a crash in the price of bitcoin might affect businesses or other institutions, because huge banks are not exposed to the cryptocurrency’s value.
Yellen has declared:
“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.”
We must say that the cryptocurrency market has been up with approximately 2.000 percent in the last couple of months. For example, bitcoin is now rated on the Coinbase exchange at $16.500. To be added that Janet Yellen was assigned for the position by President Obama in 2013.
