This afternoon during the December FMOC meeting, Janet Yellen, Chair of the Federal Reserve was asked by Steve Liesman of CNBC (a popular crypto currency news channel) if the Fed was worried about the stock market going up by triple digits every day. More importantly, Yellen was asked what is, with the ever increasing price and visibility of the most-popular cryptocurrency, the Fed’s policy on Bitcoin.
You can watch her answer below.
Why is this important? It’s just another brick in the wall solidifying the Bitcoin base. And adding layers to Bitcoin’s growing credibility.
Remember, this isn’t the first time that Bitcoin has popped-up at one of the Janet Yellen’s appearances. Back in July, someone held up a ‘buy bitcoin’ sign during Yellen’s testimony to Congress.
If you followed that person’s advice, congratulations. At the time Bitcoin was trading at around $2,400. It’s currently nearer $17,000.
Here’s the full transcript of Janet Yellen’s thoughts on Bitcoin:
You asked about Bitcoin and there I would simply say that Bitcoin at this time plays a very small role in the payment system. It is not a stable source of store of value and it doesn’t constitute legal tender it is a highly speculative asset and the Fed doesn’t really play any, role any regulatory role with respect to Bitcoin other than assuring that banking organizations that we do supervise are attentive. That they’re appropriately managing any interactions they have with participants in that market and appropriately monitoring anti-money laundering Bank Secrecy Act responsibilities that they have. I don’t believe there’s been anything specific about that.
Just generally banks have Bank Secrecy Act anti-money laundering responsibilities and this applies to Bitcoin as it does in if every other realm.