Leading cryptocurrency exchange Binance took aim at the inflation of fiat currencies as governments around the world consider a policy of quantitative easing.
While global markets are still reeling from the effects the coronavirus pandemic, governments are considering economic relief that will likely involve central banks introducing new fiat into circulation. According to a report by The Guardian, the Reserve Bank of Australia, for example, is considering a policy of quantitative easing, to support their economy during the coronavirus crisis. However, some analysts are referring to the proposal as a “money printing scheme.”
The Guardian explained the simplicity behind the central bank’s proposal,
It sounds very technical but it boils down to the RBA printing money to pump funds through the financial system.
Quantitative easing assumes that financial institutions will use the extra funds to increase lending to households and businesses.
Cryptocurrency exchange Binance had a different take on the policy. In a tweet published Mar. 19, the exchange criticized governments for contributing to inflation via money printing, while pointing out the scarcity of bitcoin.
Money printer goesBRRRRRRRRRR#Bitcoin GoesBRRRRrrr r r r r rFiat is infinite. #BTC only gets scarcer.59 days and counting to the next halving.https://t.co/zFrFY8u4bG pic.twitter.com/SlP8Wbd2e9— Binance (@binance) March 19, 2020
Bitcoin is scheduled to undergo its halving event on May 12, when the block reward will be reduced from 12.5 BTC to 6.25 BTC. The flagship cryptocurrency's inflation will effectively be cut in half, while the inflation of currencies like the euro or the U.S. dollar may soon go up.
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