The pressure is mounting on the major economies of the world. This can be clearly evidenced by observing central bank monetary policy over recent years in various countries. Bitcoin was envisaged to solve this problem but more people need to start using it for that to occur.
Monetary Madness
Geopolitical tensions may have eased somewhat over the past few days but economic ones have not.
US president Trump may harp on about how strong the stock market is at the moment but he fails to mention the weakening strength of the dollar, or escalating cash injections that are still being carried out by the central bank in the name of quantitative easing.
According to the WSJ, another $41 billion was injected into financial markets by the New York FED last week. These ongoing repo interventions take in bonds from eligible banks for short-term loans of central bank cash, which is collateralized by the securities.
The central bank has been injecting money into markets since September to keep liquidity high and allow banks to issue more loans which increases overall debt. TD Securities analysts added that the FED’s involvement in the repo market is far from over, they are expected to continue at least until May 2020 which increases the hedge narrative for bitcoin.
According to the figures the national debt is now a staggering $23.1 trillion and climbing. As recently reported by Bitcoinist, Trump has signed $4.7 trillion in debt into law, since his inauguration in 2017. Comparatively this would put the price of a single bitcoin at $260,000.
According to reports, last month the World Bank issued a stark warning stating that a wave of debt in emerging and developing nations has grown faster and larger than in any period of the last five decades and could end with another crisis.
The IMF also reported that total global debt rose to $188 trillion at the end of 2018, equivalent to nearly 230 percent of the world’s economy.
Bitcoin Solves This
The US is not alone with its central bank monetary madness. A similar situation has been developing in China where years of strong economic growth are starting to slow down. This chart illustrates what central banks have been doing over the past few years;
Central Banks around the world have pumped tons of liquidity into the markets to kill volatility.
Global Central Bank Put in one Chart: Central Banks around the world have pumped tons of liquidity into the markets to kill volatility. The People’s Bank of China has expanded its balance sheet the most in the past 15yrs. pic.twitter.com/8qbXKDzyrr
— Holger Zschaepitz (@Schuldensuehner) January 11, 2020
Recent reports indicate that the People’s Bank of China will start reducing the portion of deposits commercial banks are required to set aside as reserves. This would effectively release billions of dollars to the financial system to help boost economic growth.
It is becoming a common theme for the major economies of the world as central banks manipulate their fiat financial systems to keep themselves afloat when all signals are flashing red.
Bitcoin solves this by being the only form of currency with a truly finite supply that cannot be manipulated by any overbearing authority. By its very design it attempts to remove trust from the established financial institutions of the world and place power back into the hands of the individual.
As Satoshi Nakamoto wrote a decade ago following the last bank induced financial crisis;
The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust.
During its early years, anyone with a computer and an internet connection could contribute to the Bitcoin network and be directly involved in the creation of new bitcoin. This was the first time currency creation was accessible to a global audience, and not just exclusively for government authorities.
Coupled with the immutability of a blockchain ledger, it meant that Bitcoin was also the first currency to be totally transparent and incorruptible.
To date, Bitcoin still remains the only currency which cannot be quantitatively eased on demand by global institutions.
Would a switch to bitcoin as currency solve the global banking crisis? Add your thoughts below.
Images via Shutterstock, Twitter @Schuldensuehner The post appeared first on Bitcoinist.com. origin »
The Monetary Authority of Singapore, the Bank of Italy, the Bank of Korea and the International Monetary Fund has released a white paper exploring the concept of Purpose-Bound Money(PBM) and...
This analysis of the changing world order, its impacts on the global economy, and the future of central bank monetary policy is the first in a two-part series.
As central bankers around the world get set for a prolonged period of monetary debasement, the 99% could look to Bitcoin for protection. A Decade of Monetary Debasement Looms The European Central Bank issued guidance at the end of last year that it would keep “the key ECB interest rates to remain at their present […]
The post Bitcoin the Answer to Monetary Debasement? appeared first on Crypto Briefing.
With the ongoing conversation surrounding central bank digital currencies (CBDCs), the International Monetary Fund (IMF) is examining its potential role in future sovereign digital currency issuances.
While dozens of the world’s economic leaders participate in extreme monetary easing policy, central banks have also been hoarding gold. Central banks accumulated over 668 tons in gold purchases this year, which is more than 2018’s record numbers.
This year will see the second annual Proof of Keys event take place. Those involved will be attempting to demonstrate the monetary sovereignty Bitcoin affords, as well as the solvency (or lack there of it) of cryptocurrency exchange platforms.
Bitcoin is many things to many people, for some it is a way to make a quick buck day trading, for others a hedge against political and economic adversity and a failing banking system. Regardless of its price fluctuations, BTC does something banks never can, it empowers the people that hold it.
The European Central Bank (ECB) should determine objectives for its digital currency taskforce by mid-2020, ECB President Christine Lagarde said during her first policy meeting. What’s the Purpose of a Digital Euro? Earlier today, the ECB’s Governing Council met to decide the benchmark interest rate and the monetary policy.
Zhou Xiaochuan, former governor of the People’s Bank of China (PBoC), believes that digital currency and blockchain should continue to be a focus for China moving forward, citing the use of the coins for domestic retail transactions as well as remittance payments.
Zhou Xiaochuan, the former Chairman of the People’s Bank of China, told reporters that implementation of the digital Yuan would involve a multi-step process. He recently outlined three key areas where the digital Yuan will find its most immediate use case.
Singapore has always been seen as a hub of digital finance. Many of the world’s major blockchain and crypto conferences are held there and a lot of the region’s exchanges have chosen the island nation for its welcoming climes.
The Monetary Authority of Singapore (MAS), the city-state's de facto central bank, may soon allow cryptocurrency-based derivatives to be traded on regulated platforms.
Representatives of the current financial system are inadvertently extolling the virtues of Bitcoin at a higher frequently than ever before. The latest is Deutsche Bank President Karl von Rohr, who states that current methods intended to stave off economic crisis are lessening in efficacy.
Under the fear of potentially losing monetary control, several central banks are focusing on developing and issuing a cryptocurrency. Indeed, according to an IBM-commissioned report, a central bank digital currency (CBDC) could be ready for consumers’ use within the next 5 years.
Monetary Authority of Singapore [MAS] recently revealed that it had collaborated with banking giant J.P. Morgan in order to develop a blockchain-based prototype.
J.P. Morgan has always been bullishThe post Singapore's central bank to develop prototype for cross-border payments appeared first on AMBCrypto.
Like many representatives of the current financial system, the former European Central Bank (ECB) president is not so keen on Bitcoin. Jean-Claude Trichet dismisses cryptocurrency as “pure speculation.
Zhou Xiaochuan, the chairman of the People’s Bank of China from 2002 to 2018, has come out saying that Libra would work better if controlled by the International Monetary Fund (IMF). China has been watching Facebook’s Libra digital currency plans closely.
A former head of China’s central bank has come out to say that Facebook’s Libra would be better served under the control of the International Monetary Fund (IMF). Facebook’s proposed digital payment platform continues to draw criticism from financial regulators around the world.
The Bank of Russia has put out a statement saying it is against any ‘monetary substitutes. ’ That being said, the bank is currently actively studying stablecoins planned by various national governments.
Sygnum, the Zurich-based crypto bank, has been awarded a banking licence to provide asset management services in Singapore. Announcing the news to the world, the bank said it had successfully been granted a capital markets services (CMS) licence from the Monetary Authority of Singapore (MAS)Monetary Authority of Singapore (MAS) which is an equivalent of a […]
Sygnum, the first crypto-bank to get a banking license from Swiss regulators back in August, has now received a Capital Markets Services (CMS) license from the Monetary Authority of Singapore (MAS).
Preparing for a change at the top, the European Central Bank has decided to keep interest rates on hold and at their all-time lows. Mario Draghi, who had his last monetary policy meeting as president of the ECB, is leaving after an eight-year term during which key rates were never raised.
According to a recent report, Indian Minister of Finance and Corporate Affairs, Nirmala Sitharaman said that many countries had advised against rushing into cryptocurrency while addressing questions on Facebook’s Libra during the annual meeting of the International Monetary Fund and the World Bank.
Facebook’s Libra stablecoin, designed to facilitate international finance without the strains of government interference, has come under increasing pressure. This Friday, German Finance Minister Olaf Scholz added fuel to the fire, saying that Libra should be ‘prevented.
Central bankers and finance ministers are set to come together for the World Bank annual meeting, and the IMF has some strong advice for them: regulate digital currencies or watch your monetary monopoly lose power.
Recent reports leak that the second-biggest bank in the US, has secretly piloted Ripple’s blockchain technology and is poised to do more with it. Late last year, during a seminar organized by the International Monetary Fund (IMF), Ripple recognized Warren Buffett-backed Bank of America as one of its customers during its presentation. Probed about whether […]
The central bank of Canada is considering launching a sovereign digital currency that would eventually replace cash and combat the “direct threat” cryptocurrencies pose to monetary controls, The Logic reported.
Facebook’s proposed digital currency, Libra, appears to have forced the US Federal Reserve to reconsider the idea of issuing its own purely digital means of payment. The issue is expected to be a hot topic at meetings of the International Monetary Fund and World Bank this week.
The growth in stablecoin usage has soared since late 2017, and this has regulators and government bodies across the world incredibly worried. A new report formulated by central bank officials of the G7, the IMF, and the Financial Stability Board, believe that global stablecoins pose a systemic threat to the global economy and monetary stability,Read MoreRead More.
Whether you like it or not, central bank digital currencies are coming. We just don’t know when exactly. According to Dutch bank ING’s financial and banking experts, a “fully-fledged central bank digital currency is coming.
President of the Russian Central Bank, Elvira Nabiullina, believes there is no immediate need for Russia to explore launching a sovereign digital currency. Despite having studied and researched these topics, the central bank doesn’t believe there are any obvious benefits to the economy, as reported by TASS, October 10, 2019 Happy With Current Monetary RegimeRead MoreRead More.
Monetary policymaker Neel Kashkari wants to make one thing clear. Neither he nor his colleagues in the Federal Reserve are swayed by President Trump’s tweets when it comes to deciding the fate of short-term interest rates.
BayernLB, a bank based in Munich, Germany, has produced a report on Bitcoin’s hard monetary policy versus those of various precious metals. Acknowledging Bitcoin’s halving schedule as unique in monetary assets, the bank makes a prediction of $90,000 per BTC following next year’s further restriction of supply.
The outgoing president of the European Central Bank (ECB) believes that so far crypto assets have had few implications for existing monetary policy. However, Mario Draghi believes that this could change in the future.
As Central Banks across the world start looking into cryptocurrencies and DLT to see how feasible a fiat-backed digital currency would be, the IMF (International Monetary Fund) has now entered the conversation as well, publishing a blog post exploring the advantages of a privately issued stablecoin, one which is backed by central bank reserves.
Mario Draghi, the outgoing president of the European Central Bank, mentioned the institution is open to Modern Monetary Theory—a fiscal and monetary framework that argues governments can keep printing money so long as inflation is in check.
Stocks in the Asia Pacific region diverged on Thursday, as investors assessed the Bank of Japan's (BOJ) latest policy decision, which maintained the status quo on a long-running stimulus program designed to boost growth and inflation.
Three weeks back, the Bank of England Governor Mark Carney made an alarming comment on the global reserve currency, the US dollar. The economist said that the world’s reliance on the greenback “won’t hold” and a new global monetary and financial system backed by many more global currencies would replace it.
According to its proponents, the value proposition of Bitcoin (BTC) was dramatically accentuated on Thursday, when central bankers continued their march towards debasement and uncharted monetary territory.
Gold looked stronger than its digital rival Bitcoin on Wednesday as investors awaited the outcomes of a string of central bank meetings. The spot gold rate climbed 0. 49 percent in early European trading session to trade at $1,492.
Asian stocks traded mostly higher on Wednesday, while U. S. Treasurys notched fresh monthly peaks ahead of one of the most anticipated central-bank meetings of 2019. In less than 36 hours, the European Central Bank (ECB) will deliver a policy statement that could usher in a new era of monetary easing.
Christine Lagarde, the chairman of the International Monetary Fund (IMF) and presidential nominee for the European Central Bank (ECB), has urged regulators to remain “open” to the opportunities presented by distributed ledger technology when developing crypto regulations.
Many regulators and heads of financial institutions have expressed concern over cryptocurrencies and their use. Crypto assets come with many challenges that place financial institutions in an awkward position as far as dealing with digital assets goes.
Switzerland’s central bank is fretting over the possibility of stablecoins pegged to foreign currencies eroding its ability to use its monetary policy tools effectively, further complicating the path for cryptocurrency projects such as Libra.
OFFICIAL TRUMP trades at $7.06 as political pressure and weakening indicators raise breakdown risks, with $6.89 serving as the last major support.
The post TRUMP Price Holds Above $7, Even As Epstein Files Release Approved appeared first on BeInCrypto.
OFFICIAL TRUMP shows a fragile recovery despite weak investor confidence and a bearish chart structure. The meme coin’s inverse correlation with Bitcoin may hinder gains into year-end.
The post TRUMP Coin Says Goodbye to Bitcoin, Charts Its Own Path Toward the End of 2025 appeared first on BeInCrypto.
Coinbase’s top lawyer and a US senator traded fierce public claims this week, putting the exchange at the center of a fresh political fight over campaign donations and regulation. Related Reading: SBF Defends FTX: ‘We Had $8 Billion, Not Insolvency’ Allegations Of Political Payoff According to Senator Chris Murphy, Coinbase gave $46 million to support […]
Senator Elizabeth Warren, known for her skepticism towards digital assets, along with six fellow lawmakers, has sent a letter to SEC Chair Paul Atkins, raising concerns about President Trump’s proposal to allow 401(k) plans to invest in crypto, warning that this could jeopardize the retirement savings of American workers.
Bitcoin Magazine
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Despite some positive news coming out of South Korea, bitcoin price continued to bleed down to $107,000.
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