President-elect Joe Biden has chosen former Federal Reserve Chairwoman Janet Yellen to become the next Treasury Secretary. Yellen, an economist, if confirmed by the Senate, will become the first woman to hold the position.
This holds meaning for the crypto market as Jake Chervinksy, a General Counsel at Compound Finance, said,
“This is the single most important decision for the next four years of US crypto policy. The next Treasury Secretary will have enormous influence on whether the right to financial privacy is upheld or sacrificed to mass surveillance & forced custodianship.”
For Wall Street, it could be good news as just last month she said the US needs to “continue extraordinary fiscal support.”
Yellen had been at the forefront of policy-making for three decades, which means nobody knows the Fed better than her. Not only will she be a great Treasury Secretary, but she will also help the government achieve its objective of increased coordination between monetary and fiscal policy, said crypto trader and economist Alex Kruger.
But not only Yellen is not a fan of MMT, having said that its proponents are “confused,” but she is not really a bitcoin proponent either.
Back in December 2017, at the height of the bull run, she called Bitcoin a “highly speculative asset.”
“Bitcoin, at this time, plays a very small role in the payment system. It is not a stable source of value, and it does not constitute legal tender,” she said at the time, adding that while the Fed is researching it, “I think to my mind, limited benefits from introducing it, a limited need for it and some substantial concerns.”
During Yellen’s testimony before the House Financial Services Committee in July 2017, someone photobombed her with the “Buy Bitcoin” sign.
In Oct. 2018, while explaining why BTC is not a useful form of currency, Yellen shared that she received “a gift of bitcoins.” Raz Suprovici, the founder of the bitcoin gifting service Biterica, had sent 0.0031642 BTC, worth about $20 at that time, which has now increased to roughly $60, to Yellen to make her understand it better.