Federal Reserve chair Janet Yellen has denounced bitcoin calling the cryptocurrency a “highly speculative asset” that “is not a stable store of value and it doesn’t constitute legal tender” during her last press conference today.
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“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 assuring that 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 [and] Bank Secrecy Act responsibilities that they have,” said Yellen.
Earlier this year, Yellen commented on blockchain, the underpinning technology behind cryptocurrency, stating that she believes its an “important technology.”
Yellen, whose term in office expires in February, spoke to reporters today on a range of topics. About thirty minutes into the presser, Yellen was asked about bitcoin.
On July 12, Yellen responded to a question regarding transparency asked by Congressman Bill Posey when a spectator behind Yellen held up a sign that read “buy bitcoin.”
The price of bitcoin has increased more than seven-fold since currently valued $16,859 at press time.