U.S. Treasury Secretary’s Speech on Digital Asset

The digital dollar could be "the most reliable currency compared to real money," said US Treasury Secretary Janet Yellen in her inaugural address on digital assets on Thursday.

Speaking to attendees of the University of America event, Yellen highlighted the extreme diversity of views on crypto, saying that this is often the case with "transformative" technologies.

Between Step Back for Innovation and additional limits
"Some proponents say that technology is so flexible and profitable that the government should step back completely and allow innovation," he said. "On the other hand, skeptics recognize the value of these technologies and related products, if any, and urge the government to adopt a more restrictive approach."

CBDC
He focused part of his speech on the digital currency of the central bank (CBDC), which is an area of ​​interest to U.S. policymakers. a few years ago.

Said Yellen. “Some have suggested that the CBDC could be the next change in our finances.
A recent Federal Reserve report has opened up a public debate on CBDCs and the potential benefits and risks associated with excluding one in the U.S.

Yellen said,
Any potential CBDC project will have to deal with it

its impact on the financial system,
ability to address financial crime and national security questions, privacy implications,
ability to address macro policy and how it might interact with existing fiat currencies, stablecoins, or other CBDCs,
Citing US President Joe Biden's directive on digital assets, Yellen said any potential CBDC would need to support the dollar's role in international markets.

"I do not yet know the conclusions we will reach, but it should be clear that issuing a CBDC may present a major design and engineering challenge that will require years of development, not months.
Therefore, I share the president's urgency in furthering the research to understand the challenges and opportunities that the CBDC can present to American interests, "he said.

Yellen's way
Yellen highlighted five subjects that she believes apply to Treasury's digital assets with her speech:
the financial system "benefits from responsible innovation," the risks that can be incurred at risk if the regulation is not in line with the new rules, the rules should focus on their functions and their risks rather than on direct technology, U.S. benefits. in the current role of the dollar and regulators should work. and industry in support of responsible innovation.

The Treasury Secretary has raised some concerns in the existing crypto market, such as running on stablecoins. He referred to the Iron Finance run last year, when his TITAN token dropped in price, which resulted in its IRON stablecoin losing its stake in the US dollar.

My Opinion
Yellen correctly identifies some of the key issues that indicate the purpose of protecting basic technology and industry, but limited action can apply to jobs technically.
And yet it seems that the US government does not have a deep understanding of the basic nature, the direction of innovation and what is false.
The US government may need more knowledgeable and discerning talents and can see the essence and reality of this complex and rapidly changing world.

All in all it looks good with the future of crypto in this short message.
With so many options including CBDC, the crypto world may have many alternatives over time. Now it has just begun.