US Treasury Secretary Mnuchin: Bitcoin is not a Swiss bank account
RegulationBit News Today1 min read
U.S. Treasury Secretary Steven Mnuchin on January 12 delivered the first speech of 2018 at an Economic Club event. Mnuchin stated that the Treasury Department would engage with the Group of 20 (G-20) international group regarding the regulation of cryptocurrencies, such as bitcoin. Mnuchin warned that the U.S. government would "make sure that bad people cannot use these currencies to do bad things."
At the Economic Club of Washington event, Mnuchin added that he did not want bitcoin to become the digital equivalent of an anonymous Swiss bank account. According to Mnuchin, the Financial Stability Oversight Council, as part of its focus on cryptocurrencies, had set up a working group on the issue.
Mnuchin addresses market, consumer risks and Fed policies
Mnuchin also discussed the potential risks of cryptocurrencies. At the beginning of 2017, a single bitcoin was valued at under $1,000. He noted that while he and the Federal Reserve had examined the advantages and drawbacks of digital currencies, “they don’t think there’s any need for that at this point”.
Regarding central banks possibly issuing their own digital currencies, Mnuchin stated, "I don't think that's a concern," when asked about the possibility of Russia creating its own virtual currency to escape financial sanctions.
Discussing broader U.S. economic policies, Mnuchin emphasized higher growth, moderate inflation, and lower unemployment in the coming year. The Treasury Secretary also voiced criticism of the existing system for deciding whether to raise the national debt ceiling.
Mnuchin stated that he wanted to maintain government regulatory control over cryptocurrencies while partnering with the G20 to track major investors.
