Amid the crypto market correction, the United States Treasury Secretary Janet Yellen has advised against Bitcoin. Yellen warns against using Bitcoin as a retirement fund, calling it a risky move.
Secretary Yellen Calls for Crypto Regulations
The Treasury Secretary sees cryptocurrency as a “risky” option for people looking to save for retirement. Yellen warns that regular savers should not include Bitcoin in their retirement plans due to its volatility.
According to Yellen, the U.S Congress needs to wade in and save the situation as it will be a terrible mistake to allow people to keep cryptocurrency. Yellen added that it is not something to be given the freedom to flourish; instead, it is something to be concerned about.
Meanwhile, the remark from the Treasury Secretary came as a response to the latest move by Fidelity Investments. The fund manager announced that it would include cryptocurrency as an option in its retirement plans.
Moreover, Fidelity intends to offer a Bitcoin-backed 401(k) before the end of the year. However, even though savings plans are strictly regulated in the United States, Yellen’s stance on Fidelity’s move is not surprising.
Fidelity Investments is a leading player in providing retirement plans and services in the United States. The firm has about 23,000 companies among its client base. Additionally, Fidelity has over $11 trillion in assets under its management in the pension industry.
The United States Department of Labor also issued a stern warning against the new initiative to incorporate crypto into workers’ retirement savings. Even before the announcement by Fidelity Investments, the Department of Labor has made its position on crypto as a retirement plan clear.
It stressed that employees putting their funds into cryptocurrency will likely lose them as the market is volatile.
The Treasury Secretary calls for Congress to take action and control the inclusion of digital assets as part of retirement vehicles.
Furthermore, governments worldwide are turning up the heat on cryptocurrency and its adoption. But this did nothing to deter financial institutions from embracing digital assets and using them for transactions.
Yellen’s Hilarious Take on Inflation
The Treasury secretary criticized the current inflation as “transitory,” a statement that appears humorous and unacceptable.
Yellen made the blunder by appearing before the Senate committee on finance to answer questions relating to the 2023 budget. She was forced to clarify the somewhat “temporary” statement attached to the ongoing inflation.
The Treasury secretary clarified that her statement highlighted the twin impacts of COVID and the disruption in the global supply chain. Therefore, she added that she did not consider the effect on food and other necessities before making such a statement.
Another episode of Yellen’s verbal gaffes is when she issued a similar statement to CNN, saying, “wrong then about the path inflation would take.”
Yellen’s previous public remarks are regarded as humor no less as they ridicule her position.
Meanwhile, the Treasury Secretary would do more to ensure that her subsequent remarks would not attract widespread criticism.