It goes without saying that traditionalists — those ingrained in legacy systems, many of which have become non-efficient, expensive, vulnerable, and centralized — hate Bitcoin with a passion. While many of crypto’s critics are content with ‘staying in the closet’, so to speak, a former banking heavyweight recently expressed her distaste for this innovation in front of an audience of hundreds.
Traditionalist Bashes(?) Bitcoin With “Scripted FUD”
Attending 2018’s Montreal Fintech Forum, Francis Pouliot, a well-regarded Canadian crypto-centric entrepreneur, snagged a video of Janet Yellen bashing this nascent invention, bringing out the classic bag of tricks often enlisted by Bitcoin’s many critics.
Janet Yellen: "I am not a fan of Bitcoin. Let me tell you why".
Former Central-Banker-in-Chief proceeds to meticulous 5-minute rant against Bitcoin, robotically spewing scripted FUD talking points to Finance/Bank VIPs.
They're scared. Buy Bitcoin.⚡https://t.co/kEvUlwUZfc
— Francis Pouliot (@francispouliot_) October 30, 2018
Obama-picked Yellen, who sat as the Chair of the American Federal Reserve (FED) from 2014 to 2018, opened her discussion regarding Bitcoin by stating outright — “I’m not a fan… and let me tell you why.”
Yellen, who is a traditionalist at heart, first explained that “very few transactions” involve BTC. While this was the case years ago, this budding ecosystem has developed to a point where there are over 292,000 Bitcoin transactions/day according to Blockchain.com.
Furthering her narrative, which can only be described as ignorant and misinformed, the former FED Chair added that transactions incorporating BTC are often completed by felons, stating:
“I worry about the implications of the use of cryptocurrencies for terrorist financing, money laundering, and the like.”
Although this fear may have a semblance of validity, Yellen is seemingly forgetting the fact that U.S. dollars, like crypto assets, are used in malicious or illicit acts on a day-to-day basis.
Touching on Bitcoin’s validity as a currency and store of value, the banking legend added that BTC is “anything but,” noting that it isn’t a “stable source of value” and is far from an “efficient means of processing payments.” Seemingly referencing the block processing time of certain blockchain networks, the industry pundit claimed that the decentralized nature of Bitcoin was hampering its ability to handle second-to-second payments.
Failing to understand the concept of Bitcoin’s Proof of Work (PoW) mining consensus mechanism entirely, the economist then noted that “theoretically,” decentralization could hail in a “break down of trust,” in spite of the fact that the Bitcoin Network has been nearing its 10-year milestone.
Yellen Speaks On Fiat Digital Currency
Exploring another pressing topic, Yellen went on to discuss government-issued digital currencies, which have been rumored at en-masse. While she noted that while a number of global governments are pondering the idea, the U.S., per her tenure at the FED, isn’t all too enthusiastic about launching such a project.
The former economics professor added that with government-issued cryptocurrencies, there’s still an “enormous” risk of anonymity and how that specific feature could impact the project itself.
So… if Yellen is against decentralized crypto assets, and centralized government-issued digital currencies, it can be assumed that she is hell-bent in her traditionalistic attitude and isn’t ready to let go of her deflationary U.S. dollars.