Crypto-Twitter has been horrified at the news that the US Federal Reserve has been mandated to print as much new money as it needs to avoid a deeper financial crisis due to the coronavirus pandemic.
Charles Hoskinson, CEO of Cardano developer, IOHK, even tweeted on March 23 that he “got a real OneCoin vibe” from the United States. Dollar
In an interview with the CBS 60 Minutes, Federal Reserve Bank President of Minneapolis, Neel Kashkari, said that there is “an infinite amount of cash with the Federal Reserve.”
After being pressed on his comment, Kashkari clarified:
“That is literally what Congress has instructed us to do. That is the authority they have given us: printing money and providing liquidity to the financial system. “
The idea that the Federal Reserve would get the go-ahead to print an infinite amount of new money led to Hoskinson’s comparison to OneCoin.
The OneCoin scam made at least $ 4 billion from unsuspecting investors, unaware that the token they bought had no underlying value.
Other industry figures quickly weighed in with their own, perhaps slightly more measured, issues.
Morgan Creek Digital co-founder Anthony Pompliano tweeted about the United States Dollar’s Unlimited Stock, saying:
“History tells us that this is not sustainable in the long term for a currency.”
Meanwhile, Binance CEO, CZ, gave the Fed an Economics 101 in his tweet, with the following teaser:
Ever heard of “supply, demand and price”? What happens to the price if you have an endless offer? ‘
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