Janet Yellen – an American economist who serves as the 78th US Secretary of Treasury – believes that people should not rely on investing in cryptocurrencies as part of their retirement strategy. In his view, the asset class is “too risky”, while Congress must advise the wider society about the danger.
‘For me, this is a very risky investment’
American politician Janet Yellen does not fit the bill as a proponent of the cryptocurrency sector. It is, therefore, no surprise that he cautioned those considering adding digital assets to their retirement plans that this may not be a reasonable move. In a recent appearance in Washington, she said:
“It’s not something I would recommend to most people who are saving for their retirement. To me, it’s a very risky investment.”
Additionally, the Treasury Secretary said it would be wise if Congress looked into the matter and explained which assets could be added to retirement options, such as 401(k) plans:
“I’m not saying I recommend it, but it would be a fair thing in my mind.”
In April this year, one of the world’s largest asset managers – Fidelity Investments – announced that it would enable investors to add bitcoin to their retirement 401(k) plans. Dave Gray – a top executive at the firm – explained the company’s decision:
“Fidelity believes that blockchain technology and digital assets are going to be a huge part of the future of the financial industry.”
Yellen’s Past Thoughts on Crypto
Americans have touched upon the cryptocurrency industry several times as their opinions have been mainly negative.
Two years ago, he argued that bitcoin and altcoins could provide some benefits to the US financial system, but at the same time, they could be used for terrorist financing and money-laundering activities. Soon after, Yellen disabled BTC as a highly speculative asset for trading.
Last summer, he gave her two cents on stablecoins, noting their quick expansion, and calling on authorities to impose regulations on them immediately.
Despite its anti-crypto stance, this is not the case with central bank digital currencies (CDBCs). In April, it claimed such a product could help the dollar remain the world’s reserve currency.
Furthermore, Yellen thinks CBDCs will be a better payment method option than bitcoin because the latter is known for its price volatility, “high fees and slow processing times.”
Featured image courtesy of TimesofIsrael
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