WASHINGTON—Cryptocurrencies are now playing a significant role in America’s financial decision making, according to Treasury Secretary Janet Yellen, but it still doesn’t have much to do with payments.
“Crypto has obviously grown by leaps and bounds,” Yellen said during an interview with CNBC. “And it's now playing a significant role, not really so much in transactions, but in investment decisions of lots of Americans.”
According to an analysis by Pymnts.com, aside from acknowledging bitcoin’s move into the investing mainstream, notably by institutional investors and large financial institutions, there was a “decided change in tone” by the Treasury Secretary when asked, “Where we are in the crypto conversation.”
The report noted Yellen has been a frequent critic of crypto for what she called its “malign uses” by criminals and terrorists during her confirmation hearings, although she has maintained it does have some potential to improve the financial system.
Asked about her previous views during the CNBC interview, she said, “I have a little bit of skepticism,” adding she has “valid concerns” about its impact on financial stability, consumer and investor protection, and of course its role in “illicit transactions.”