Janet Yellen (financial leader) Sides CBN against Bitcoin

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Janet Yellen (financial leader) Sides CBN against Bitcoin
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Janet Yellen who is the world’s most powerful financial leader took side with the Central Bank of Nigeria against the world’s most valuable cryptocurrency Bitcoin.

Janet Yellen who is the  U.S Treasury Secretary and custodian of the $20 trillion economic juggernauts warned bitcoin investors and the general public of the danger of investing and owning the crypto.

She also mentioned that bitcoin might be an ideal for money laundering and illicit transactions.

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In her words,

“I don’t think that bitcoin … is widely used as a transaction mechanism,” she told CNBC’s Andrew Ross Sorkin at a DealBook conference. “To the extent, it is used I fear it’s often for illicit finance. It’s an extremely inefficient way of conducting transactions, and the amount of energy that’s consumed in processing those transactions is staggering.”

According to the CBN a few weeks ago,

“The question that one may need to ask therefore is, why any entity would disguise its transactions if they were legal. It is on the basis of this opacity that cryptocurrencies have become well-suited for conducting many illegal activities including money laundering, terrorism financing, purchase of small arms and light weapons, and tax evasion,” the CBN.

The Central Bank of Nigeria had also mentioned that Cryptocurrency is mostly used for some unsafe purposes rather than payments.

More also, repeated and recent evidence now suggests that some cryptocurrencies have become more widely used as speculative assets rather than as means of payment, thus explaining the significant volatility and variability in their prices.

“Because the total number of Bitcoins that would ever be issued is fixed (only 21 million will ever be created), new issuances are predetermined at a gradually decelerating pace the CBN said.

The CBN and Nigeria’s apex bank are concern with protecting investors from losses due to dealings with crypto.

And because of this, they are set out to keep enlightening Nigerians on the dangers of cryptos in the financial system.

Due to the fact that cryptocurrencies are largely speculative, anonymous, and untraceable, they are increasingly being used for money laundering, terrorism financing, and other criminal activities. Small retail and unsophisticated investors also face a high probability of loss due to the high volatility of the investments in recent times.

“In light of these realities and analyses, the CBN has no comfort in cryptocurrencies at this time and will continue to do all within its regulatory powers to educate Nigerians to desist from their use and protect our financial system from the activities of fraudsters,” the Nigerian apex bank said

On the side of Yellen, she also made mention that the usual high price swings of bitcoin most time cost some investors their fortune.

“It is a highly speculative asset and you know I think people should be aware it can be extremely volatile and I do worry about potential losses that investors can suffer,” Yellen said.

However, Bitcoin is now traded at $52,040.95 with a trading daily volume of $90.6 Billion which represents that Bitcoin has been down by 8.55% for today.

Conclusion

Janet Yellen who is the world’s most powerful financial leader took side with the Central Bank of Nigeria against the world’s most valuable cryptocurrency Bitcoin.

Bitcoin is now traded at $52,040.95 with a trading daily volume of $90.6 Billion which represents that Bitcoin has been down by 8.55% for today

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