US Federal Reserve chairwoman Janet Yellen has issued new comments on how she believes the country’s financial regulators should address bitcoin and blockchain technologies, stating that these agencies must be careful not to “stifle innovation”.
The statements were issued in response to a question submitted to Yellen by US Representative Mick Mulvaney following a 15th July meeting of the House Committee on Financial Services’ Monetary Policy and Trade, of which he serves as vice chairman.
In his 11-page submission, Mulvaney sought clarity as to how the central bank viewed the increasing popularity of bitcoin after this summer’s economic crisis in Greece, notably asking Yellen if the technology’s increasing popularity implied the public may be losing faith in the Fed’s ability to conduct monetary policy.
“We do not interpret bitcoin’s popularity as having a relationship with the public’s view of the Federal Reserve’s conduct of monetary policy.”
Despite asking two questions, Yellen focused most of her response on how she believes regulation should develop in the US, emphasizing that the Federal Reserve and federal banking agencies have “limited authority over the operation of digital currency systems” as a whole.
“Where a banking organization supervised by the Federal