Helicopter Money: Bigger Threat to Currencies Than QE?
Quantitative Easing (QE) has so far not produced the runaway inflation some predicted. But before you start feeling comfortable about fiat currency again, central planners have another trick in store, i.e. “helicopter money,” a term that’s back in vogue thanks to a country that has tried almost everything to stimulate its economy: Japan. A more extreme....
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For the longest period, central banks and the Federal Reserve held all of the power in the financial world. Although very little has changed then, there are concerns regarding the “magical power” associated with these institutions. Moreover, it seems implausible central banks will aid in recovering after the financial crisis. When looking for ways to....
That being said, a loan from a central bank - permanent or not - is still a debt with an interest cost. Even though the consumer would not be responsible for paying back the money, the government budget would be affected. A transparent solution to the economic status of Australia is needed, and the time has come to start considering alternative options. The financial system we know and use today is not broken, according to financial experts and governments. At the same time, central banks are wielding so much power, and governments are next to powerless when a decision needs to be made. To....
The CEO of cryptocurrency exchange Binance does not see central bank digital currencies (CBDCs) as a threat to cryptocurrencies, like bitcoin and ether. “It will validate the blockchain concept so that anybody who still has concerns about the technology will say: ‘Ok, our government is using the technology now,'” he opined.
CZ Sees No Threat to Crypto Coming From CBDCs
Binance CEO Changpeng Zhao (CZ) said Wednesday that he believes central bank digital currencies (CBDCs) are not a threat to cryptocurrencies, like bitcoin (BTC) and ether (ETH), Reuters....
In the decade since the Global Financial Crisis, we’ve seen all sorts of schemes designed to show that everything’s really OK. Bail-outs, bail-ins, quantitative easing, zero and negative interest rates, even hints at helicopter money. The U.S. Federal Reserve’s latest thought-bubble is buying shares on the stock market. All these plans have one big....
The European Central Bank (ECB) has proposed a directive of the European Parliament and of the Council stating that ‘virtual currencies do not qualify as currencies from a Union perspective,’ and wants digital currencies to be explicitly defined as not legal currencies or money. In a document titled, Opinion of the European Central Bank [PDF], the ECB is proposing amending Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and amending Directive 2009/101/EC. According to the ECB, the use of digital....