Digital Assets Could Cause Harm to Financial System Says Janet Yellen

Crypto is a hot topic for most investors that either want to dabble into it, or completely avoid it altogether. Secretary of the Treasury Janet Yellen recently expressed her concerns over the pros and cons of digital currency and what it means for the economy. 

Yellen expressed that everyone should take a serious look at the risks posed to investors and how it could impact the broader market. The positives and negatives vary from one person to the next, but generally cover a lot of ground. 

Government Stuck Between Support and Against 

Digital assets are nothing new since the early 2000’s. However, the recent changes to the market have grown at a huge rate and the problems they cause are not new. 

The benefits and the support form the government have been a positive look to the future of crypto. In addition, these should be regulated as common currency and the support for the technology that powers it. 

Potential Bank for Crypto

They are looking at a variety of options for various payment systems. This includes digital assets such as stablecoins and a bank that could handle strictly digital currencies. 

Stablecoins have a ‘backbone’ so to speak, as they vary in value based on the volatility of the asset. This form of payment appears to be more stable and is something that is often referred to as a quality form of digital payment.  

The Federal Reserve has stated that they are considering a digital dollar, which would be a form of a centralized bank. This bridge could potentially help the gap between digital economy and other financial systems.