Binance CEO believes that the current turmoil created by the Fed’s QE initiatives will force citizens into crypto. It is just a matter of time.
Is Fed’s Move A Blessing in Disguise for Crypto?
While SEC continues to strengthen its stance against cryptocurrencies, the Federal Reserve has injected $53 Billion in the banking system. The transaction has been done in lieu of repurchase agreements and further an amount of $75 Billion will be added.
A repurchase agreement is a form of short-term borrowing, mainly in government securities. The dealer first sells the security to investors and later buys them back, usually the following day, at a slightly higher price.
Federal Reserve’s move has faced backlash from several citizens. Interestingly, the CEO of Binance, Changpeng Zhao took to twitter and said that these steps undertaken by the government will invariably lead people to enter the crypto market and it would be longer a choice rather the only option.
CEO of Iconic, Pat Lowry agreed to CZ’s statement and said that everyone will eventually accept crypto when they become aware that it is the driving engine behind their favorite apps and that all global financial assets are tokenized.
Are We Headed Towards An Economic Lapse?
Reports further mention that federal revenue and expenditures have aggravated volatility in the $2 Trillion repo market. As a matter of fact, the national budget jumped past $1 trillion in the first 11 months of the fiscal year. Moreover, this scenario had not been witnessed since 2012, when the United States was recovering from the Great Recession.
Also, the Fed is further expected to announce that it will lower down interest rates further by a quarter of a percentage point as it seeks to prevent an economy lapse, thus, leading investors to gradually steer away from traditional financial investments and try out new avenues.
What will be Fed’s next move? Will it further catalyze global crypto adoption? Let us know, what you think?
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Coming from a physics background the unpredictability and intrigue of the cryptoverse attracted me to take a dive in this field. I am all eyes and ears for the latest trends in blockchain and crypto sphere. Whenever I am not writing or researching, I love to read sci-fi novels, play basketball and watch action movies. I strongly believe that blockchain and cryptocurrency will bring lasting transformations in people’s lives in the years to come. You can reach out to me at supriya [at] coingape.com.