Treasury Sec. Janet Yellen believes that crypto is ‘very risky’ for retirement

The renowned American economist who serves as the 78th US Treasury Secretary, Janet Yellen, said people would not rely on crypto investments as part of their retirement strategy. According to her, crypto assets are “very risky,” and Congress should release a warning to the society regarding the same.

Politician Yellen, known for her harsh comments on crypto every now and then, does not fit the bill as a proponent of the crypto industry. She warned investors who contemplate adding crypto to their retirement plans that this might not be an appropriate step. During her recent appearance in Washington, she says:

“It’s not something that I would recommend to most people who are saving for their retirement. To me, it’s a very risky investment.”

In addition, the Treasury Secretary suggested that Congress keep an eye on the situation and clarify which assets could be added to retirement options like 401(k) plans:

“I’m not saying I recommend it, but that, to my mind, would be a reasonable thing.”

As TheCoinRise reported in May, two senators raised concerns about one of the largest asset managers in the world, Fidelity Investments’ plans to add Bitcoin in 401(k)s. Interestingly, in the same month, Senator Tommy Tuberville introduced the Financial Freedom Act, which allows Americans to add crypto to their 401(k) retirement savings.

Yellen’s past stance on crypto

Her predominantly negative comments on the crypto industry always gain headlines. Two years back, Yellen argued that cryptocurrencies could provide certain benefits to US financial systems but can also lead to illicit activities like terrorist funding and money laundering. Later, she called Bitcoin a highly speculative asset that is inefficient for transactions.

This is not the case with CBDCs, despite her anti-crypto position. She said in April that such a product might help the dollar maintain its status as the world’s reserve currency.

Furthermore, Yellen believes that CBDCs will be a far superior payment alternative to bitcoin, which is notorious for its price volatility, high fees, and slower processing speed.

In March, the Treasury Secretary talked about the benefits of crypto and the growth of the industry.