Yellen Opposes Fed-Issued Digital Currency, Stresses Debt Concerns – Coincu

Yellen publicly voiced opposition to a Fed digital currency on May 6, reflecting market concerns about financial stability. This statement adds to a broader narrative about the cautious U.S. regulatory stance in digital currencies.

The Treasury Secretary’s stance underlines her focus on economic balance and debt management, raising questions about the future of a Fed-issued digital dollar amid ongoing economic shifts.

Yellen’s Skepticism on CBDC Sparks Regulatory Debate

Yellen reiterated her skepticism about the Federal Reserve issuing a central bank digital currency (CBDC), highlighting concerns over potential risks to financial stability and existing systems. Her position was clearly stated during a finance meeting reported by BlockBeats News, reinforcing her previous remarks against direct federal involvement in digital currencies.

Yellen’s comments reaffirm federal caution, potentially slowing the progress of U.S.-backed digital asset initiatives. Markets and industry insiders keenly follow such developments for signs of regulatory shifts, which could impact capital allocation and funding within the digital currency sphere.

“I have consistently voiced skepticism about cryptocurrencies such as Bitcoin and CBDCs, citing concerns about illicit finance, energy consumption, and risks to the existing financial system.” — Janet Yellen, U.S. Treasury Secretary

Market Figures Reveal Global Cryptocurrency Trends

Did you know? In previous positions, Janet Yellen consistently highlighted the potential risks of digital currencies connected to illicit finance and systemic inefficiencies. This long-standing stance has heavily influenced U.S. policies regarding cryptocurrency development.

Bitcoin, currently valued at $94,597.23, retains a market cap of $1.88 trillion amid economic shifts. Despite a 0.99% rise over the past day, its market dominance stands at 64.11%, as reported by CoinMarketCap. The asset has experienced diverse fluctuations, with a notable 14.48% increase over 30 days and a subtle 0.37% weekly decline, reflecting the volatile nature of cryptocurrency markets.

Experts at the Coincu research team see cautious regulatory stances potentially stalling U.S. digital dollar initiatives in comparison to Europe or China. Continuous analysis suggests that such caution fosters increased interest in decentralized assets, particularly Bitcoin and Ethereum, as alternatives during this uncertain financial period.