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“We have the opportunity to make money digitally”

May 18, 2020

The Fed chairman, Jerome Powell recently spoke about the measures taken during the financial crisisand many on Twitter saw their observations as evidence of the need for cryptocurrencies.

In a 60-minute interview on May 17, Powell spoke to news anchor Scott Pelley The Federal Reserve had essentially flooded the economy with printed money in response to the fall of the Dow Jones in March and investors turning away from US government bonds.

According to Powell The Federal Reserve can print US dollars digitally In addition to creating physical tickets:

“As a central bank, we have the ability to digitally create money. We buy government bonds or bonds for other government-guaranteed securities. And that actually increases the money supply. We also print real currencies and distribute them through the Federal Reserve banks.”

“We have the opportunity to make money digitally”
“We have the opportunity to make money digitally”

When Pelley asked if the Federal Reserve could do more during the pandemic, Powell said “he was by no means out of ammunition.” Claim that the bank would expand its existing credit programs “as long as necessary”.

Prove the need for Bitcoin?

Many Twitter users Cryptocurrency fans They hurried to attack the President’s comments. Podcaster Marty Bent said inflationary measures like “flooding the system with money” are more difficult to do with a cryptocurrency like Bitcoin (BTC).

Others like him Crypto enthusiast Nick Chongwere they more concise:

“It’s a strange way of saying, ‘Buy Bitcoin'”

Is Bitcoin separating from traditional markets?

The nature of the measures discussed by Powell can have an immediate impact on traditional markets. However, Cointelegraph has reported that BTC’s recent bullish behavior suggests that the cryptocurrency is far less correlated to stocks than it was at the start of the pandemic.