Former Fed Chair Janet Yellen Is 'Not A Fan' of Bitcoin

Former U.S. Federal Reserve chair Janet Yellen is "Not a fan" of bitcoin.

Speaking at the Canada Fintech Forum on Monday, Yellen, who served as chairman of the Board of Governors of the Fed between 2014 and 2018, outlined a number of concerns she has with bitcoin in general and the idea of central bank-issued cryptocurrencies specifically.

Yellen spoke about price volatility, investor risks and the threat of hackings in a five-minute speech, according to a video posted online by Francis Pouliot.

"I know there are hundreds of cryptocurrencies and maybe something is coming down the line that is more appealing but I think first of all, very few transactions are actually handled by bitcoin, and many of those do take place on bitcoin are illegal, illicit transactions."

Yellen has previously described bitcoin as a "Highly speculative asset" in testimony before Congress.

Months prior, a separate appearance by Yellen before a Congressional committee featured a now-infamous "Buy Bitcoin" sign appearing behind the former Fed chair.

"It is one ... thought that for something to be a useful currency, it needs to be a stable source of value, and bitcoin is anything but. So it's not used for a lot of transactions, it's not a stable source of value and it's also not an efficient means for processing payments. It's very slow in handling payments."

Yellen argued bitcoin's energy use is "Very high" when compared to traditional payments rails, which she believes is another sign that bitcoin is not an effective form of currency or a stable source of value.

Regarding central bank digital currencies, Yellen took aim at other perceived issues.

Global anonymous currencies "Would be an obvious target for cyberattacks," according to the former Fed chief.