Balaji Srinivasan criticizes the U.S. Federal Reserve
Former Coinbase executive Balaji Srinivasan has criticized the U.S. Federal Reserve (Fed) for its unpredictable monetary policy. He contrasts the Fed’s approach with the predictability of Bitcoin (BTC), highlighting the consistency of Bitcoin’s issuance over the last 15 years. According to Srinivasan, predictability is crucial for currency stability.
Arbitrary rate decisions and market risk
Srinivasan attributes market risk and volatility to the Fed’s arbitrary rate decisions. He argues that these decisions are often influenced by outdated data and political motives. This unpredictability can have a negative impact on the stability of the currency and the overall market.
Efforts to limit the Fed’s power
In addition to criticism from individuals like Srinivasan, there are also efforts by U.S. politicians to limit the Fed’s power. Recently, the House of Representatives passed a bill sponsored by Republican Majority Whip Tom Emmer. The bill requires Congressional authorization before the Fed can launch a central bank digital currency (CBDC). Emmer’s legislation aims to protect Americans’ privacy and ensure that digital currency policies reflect values such as privacy, individual sovereignty, and free market competitiveness.
Fed’s stance on CBDC
Fed Chair Jerome Powell mentioned in March that the agency is far from recommending or adopting a CBDC. This suggests that the Fed is currently cautious about introducing a central bank digital currency and is not actively pursuing its development.
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