As the Federal Reserve reveals it has been told to print as much money as it needs to combat the coronavirus crisis, Crypto-Twitter points out the shortcomings of the plan.
Crypto-Twitter has reacted with horror to the news that the United States Federal Reserve has been given a mandate to print as much new money as it needs to in order to avert a deeper financial crisis due to the coronavirus pandemic.
Charles Hoskinson, CEO of Cardano developer, IOHK, even tweeted on March 23 that he was, “getting a real OneCoin vibe,” from the U.S. Dollar.
Congress tells Fed to just print more money
In an interview with CBS’s 60 Minutes, President of the Federal Reserve Bank of Minneapolis Neel Kashkari referred to there being “an infinite amount of cash at the Federal Reserve.”
The Federal Reserve says there is an “INFINITE AMOUNT OF CASH”
This is quite literally the reason bitcoin was created. pic.twitter.com/JTE9TVoSr0
— Vis (@Vis_in_numeris) March 23, 2020
After being pressed on his comment, Kashkari clarified:
“That’s literally what Congress has told us to do. That’s the authority that they’ve given us: to print money and provide liquidity into the financial system.”
The idea of the Federal Reserve being given the go-ahead to print an infinite amount of new money, sparked Hoskinson’s comparison to OneCoin.
As Cointelegraph reported, the OneCoin scam made at least $4 billion from unsuspecting investors, unaware that the token they were buying into had no underlying value.
Pomp and CZ slightly less blunt
Other industry figures were quick to weigh in with their own, perhaps slightly more measured, takes on the matter.
Morgan Creek Digital co-founder, Anthony Pompliano, tweeted about the U.S. Dollar’s now-unlimited supply, saying:
“History tells us that this is not sustainable long-term for a currency.”
Meanwhile, Binance CEO, CZ, gave the Fed an Economics 101 in his tweet, posing the following teaser:
“Ever heard about ‘supply, demand and price’? What happens to price when you have infinite supply?”
Bitcoin (BTC) price reacted to the news by blasting back up through the $6,000 level and onwards up to $6,500 at time of publication.