New US Treasury Secretary Still Not A Bitcoin Fan?

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Last Updated on 23 March 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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Upon knowing that Democrat Joe Biden had won the US election a few weeks ago, a fact that some Republican supporters are still not ready to accept, we asked whether or not this was good news for Bitcoin. Our conclusion was that the introduction of Vice-President Kamala Harris at least was promising.

Now that the Democratic White House’s cabinet picks are becoming clear, many in the US press are ready to declare that at least the choice for US Treasury Secretary is probably not representative of the greatest Bitcoin bull.

Ms Janet Yellen, who used to head the Federal Reserve from 2014 until 2018, will now fulfill that role in Biden’s cabinet, and she does have somewhat of a bearish Bitcoin past.

Advertentie.

The 2017 ICO Run

You see, the last time Bitcoin made a run for it was back in 2017-2018. Ms Yellen, who is known for doing everything by the book, had at that moment presided over an economy that had gotten out of the financial crisis of 2008 without any mistakes, or at least none that she made.

YouTube video

During her final press conference, which she had clearly hoped would be about her tenure as head of the Fed, reporters were only interested in her opinion about Bitcoin, which was at that moment starting to make a run from $5,000 to the $20,000 region. In fact, as she’s delivering her remarks, someone held up a Buy Bitcoin sign behind her.

The Fed chair was clearly annoyed and stated:

Bitcoin is not a stable store of value and it doesn’t constitute legal tender.

It is a highly speculative asset.

The 2018 sell-off

Furthermore, when Bitcoin (and the rest of the crypto market) sold off in 2018, Ms Yellen reminded everyone of her prediction of end of 2017 and stated that it was still a market mired in illegality with many Bitcoins being used for “illicit, illegal transactions.”

She stated:

I will just say outright I am not a fan, and let me tell you why. I know there are hundreds of cryptocurrencies and maybe something is coming down the line that is more appealing but I think first of all, very few transactions [that] are actually handled by bitcoin, and many of those do take place on bitcoin are illegal, illicit transactions.

Already we wonder whether she’s changed her mind this time round.

kropic / Depositphotos.com