Janet Yellen, a newly appointed U.S. Treasury secretary, reinforced her view that Bitcoin is "used constantly in illicit transactions", despite being "inefficient as a form of payment".
The cryptocurrency is ineffective for transactions due to its highly speculative nature, she said during her appearance on the DealBook DC Policy Project on Monday (22), citing that the cryptocurrency is an "extremely inefficient amount" due to the amount of energy needed to conduct transactions.
According to analyst Sven Henrich, a Yellen speech is a declaration of war on Bitcoin.
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Yellen's speech coincided with the price of the digital currency falling from a range of $ 58,000 to $ 47,600, the biggest daily tumble in history. Ethereum dropped from $ 2,000 to $ 1550.
“People should be aware that it can be extremely volatile and I am concerned about the potential losses that investors may suffer… I fear that it is usually due to illicit financing. It is an extremely inefficient way of conducting transactions. ”
Yellen has said in the past that the rise of the cryptocurrency industry has increased the risks of vulnerabilities, as criminals “tend to use Bitcoin for illicit actions”.
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