FX.co ★ Yellen warns of "explosion of risks" from misusing cryptos

Despite their growing popularity, cryptocurrencies still involve all sorts of serious hazards. Thus, US Treasury Secretary Janet Yellen has warned of an "explosion of risks" from misusing digital technologies and cyber cash. This is the third time she has raised the issue of virtual money this year.

"We are living amidst an explosion of risk related to fraud, money laundering, terrorist financing, and data privacy. <...> We’re seeing more – and more sophisticated – cyberattacks aimed at institutions that hold up our society: hospitals, schools, banks and even our government," Yellen told the Treasury's financial sector innovation policy roundtable.

Yellen’s speech has sparked great interest because it reflected the view of the White House on the problem. Experts saw a change in the rhetoric of the US government concerning cryptocurrencies. Policymakers were too sceptical about them at first. However, their position on the matter has changed. The US is still increasingly wary about digital money. At the same time, Washington understands that it will have to put up with them.

"I see the promise of these new technologies, but I also see the reality: cryptocurrencies have been used to launder the profits of online drug traffickers; they've been a tool to finance terrorism," the Treasury Secretary emphasized. She also added that "the private sector invests enormous resources, finding ways to stop bad actors from misusing existing technologies."