Fed: We have the ability to print money digitally

The chairman of the US Federal Reserve, Jerome Powell, recently spoke about the measures taken during the financial crisis, with many on Twitter viewing his remarks as evidence of the need for a cryptocurrency.

In a May 17 interview with ’60 Minutes’, Powell spoke to news anchor Scott Pelly, saying the Fed had essentially flooded the economy with money printed in response to the fall of the Dow Jones in March and investors who diverted. of U.S. equity securities.

According to Powell, the Fed can print dollars digitally in addition to creating physical banknotes:

“As a central bank, we have the ability to make money digitally. And we do that by buying government securities or bonds for other government-guaranteed securities. And that actually increases the money supply. We also print the actual currency and distribute it through Federal banks. reserve. “

Asked by Pelly if the Fed could do more during the pandemic, Powell said they were “far from running out of ammunition” , saying the bank would expand its existing lending programs for “as long as necessary”.

Proving the need for Bitcoin ?

Many members of the crypto Twitter quickly rushed to the Fed’s remarks. Podcaster Marty Bent said inflationary measures such as “flooding the money system” were more difficult to implement with a cryptocurrency like Bitcoin (BTC).

Others, such as crypto enthusiast Nick Chong, were shorter:

“It’s a weird way of saying ‘buy Bitcoin.'”

Separating Bitcoin from traditional markets?

The type of action Powell is discussing can have an immediate impact on traditional markets. However, it was reported that BTC’s recent bullish behavior suggests that the cryptocurrency is far less associated with traditional stocks than it was at the start of the pandemic.