Janet Yellen Recognizes 'Significant Benefits' of Cryptocurrencies

US Treasury Secretary Janet Yellen is notorious for not being too friendly with cryptocurrencies, but that seems to be starting to change. She acknowledged that digital currencies have significant benefits. During the Squawk Box program on CNBC, Janet Yellen noted that cryptocurrencies have many technological and social advances and benefits. 

She acknowledged that digital assets have begun to "play a significant role, not so much in transactions but in the investment decisions of many Americans.

"There are significant benefits to cryptocurrencies, and we recognize that innovation in the payment system can make it healthier," 

the US Treasury Secretary said.

However, it is too early to call Yellen a fan of digital assets. During the broadcast, she also stressed that cryptocurrencies could still become a threat to financial stability. This type of asset is still too volatile and raises consumer protection and criminality issues.

In early December last year, Janet Yellen noted that stablecoins could improve efficiency and facilitate payments, but require proper regulation.