Janet Yellen, former head of the Fed and Joe Biden's nominee for US Treasury Secretary, has said the government should consider the benefits of cryptocurrencies.
In a testimony released yesterday, Yellen claims cryptocurrencies have the potential to "improve the efficiency of the financial system." In particular, she said:
"Bitcoin and other digital and cryptocurrencies are providing financial transactions around the globe. Like many technological developments, this offers potential benefits for the US and our allies."
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However, Yellen has also mentioned this type of technology can be exploited by other states and individuals to undermine US interests.
It must be noted these recent statements are in stark contrast to those made by the former Fed chief in the past, when she assured cryptocurrencies are used "mainly for illicit financing" and that the US government had to look for ways to "curtail" the use of cryptos as part of its anti-money laundering efforts.
Now, Yellen says her goal is to encourage the use of cryptocurrencies for "legitimate activities."