Janet Yellen Stresses Need for Central Bank Digital Currency Work

The U.S. Treasury Secretary also reiterated the need for regulation in light of the recent turmoil in the crypto industry.

AccessTimeIconOct 13, 2022 at 3:35 p.m. UTC
Updated Oct 13, 2022 at 9:17 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Washington D.C. — U.S. Treasury Secretary Janet Yellen on Wednesday reiterated the importance of building a regulatory framework for digital assets, referencing Terra as one possible danger and the tether stablecoin's “breaking the buck” as a result of the crypto crash.

In a conversation at the International Monetary Fund’s (IMF) annual meeting here, Yellen said that while there are more existing regulations “than people think” that can be applied to crypto, there are also many “holes” that need to be addressed.

Yellen said she would like to work with Congress to fill those holes as digital finance is “a tough thing to regulate,” she said.

As for a U.S. central bank digital currency, Yellen thinks a CBDC has advantages and the potential to solve many problems. While the process of creating a CBDC could take many years, it is “certainly worth getting involved in developing.”

“We can continue to think about whether it’s right to implement,” she said, but the U.S. should be “in a position where we could issue one.”

Last week, the Financial Stability Oversight Council (FSOC), of which Yellen is a member along with Federal Reserve Board Chair Jerome Powell, among others, published a report asking Congress to step in to provide guidance on what should be the limits of securities regulation.

UPDATE (Oct. 13, 2022, 21:18 UTC): Updates headline.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Helene Braun

Helene is a New York-based news reporter at CoinDesk, currently covering the criminal trial of infamous crypto mogul Sam Bankman-Fried. Helene is a recent graduate of New York University's business and economic reporting program and has appeared on CBS News and Nasdaq TradeTalks. She holds BTC and ETH.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.