Former Coinbase director Balaji Srinivasan is not a fan of the US Federal Reserve (central bank). On Twitter, he claims that the Federal Reserve represents “unpredictable monetary policy” compared to Bitcoin, which he calls “predictable monetary policy.”
Predictable versus unpredictable
“If you graph the predicted issuance of new Bitcoin versus the actual issuance over the past 15 years, you see the exact opposite. The predictability is as crucial as the scarcity of the currency itself,” said Srinivasan.
According to the former CEO of Coinbase, the unpredictability of the Fed is a major risk for the markets. “All the unpredictability and volatility comes from the Federal Reserve. They choose interest rates based on outdated data and political motivations,” Srinivasan continues.
The chart above shows how market expectations always manage to be completely wrong when it comes to US central bank policy.
Criticism of the American central bank is increasing in the run-up to the elections. That could have an interesting twist, especially now that Donald Trump seems to have someone who is starting to become pro-Bitcoin.
No Central Bank Digital Currency in America
Last week, the Bitcoin industry scored another victory over the US government. Congress has passed a law that means that the Federal Reserve cannot simply launch a Central Bank Digital Currency (CBDC).
They must first pass through Congress.
“My legislation ensures that policy regarding any CBDC in America remains in the hands of the people, so that the development of digital money supports our values around privacy, individual sovereignty and free markets.
That’s what the future global digital economy needs. We are proud to have led this initiative and I thank my colleagues for their support,” said a proud Tom Emmer.
Incidentally, Fed Chairman Jerome Powell said in March that the Federal Reserve was nowhere near launching an American CBDC.
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Source: https://newsbit.nl/voormalig-coinbase-directeur-haalt-keihard-uit-naar-federal-reserve-en-prijst-bitcoin/
