Bitcoin scares central banks. Here’s why
Jim Reed, head of lending strategies at Deutsche Bank, believes that if central banks continue to be aggressive, it will only increase the popularity and attractiveness of alternative currencies..
In an interview, he referred to yesterday’s speech by Fed Chairman Jerome Powell, who said that the US Central Bank is considering cutting interest rates in the face of current economic uncertainty and inflationary risks. This drove the dollar down against major fiat currencies and hit a three-month low against the euro..
Together with that Bitcoin continues to skyrocket and sets new records for 2019. Today the MTC rate has risen to $ 12,900, and over the past seven days it has grown by 43%.
Jim Reed also noted that the market’s explosive growth is partly due to the anticipation of a cryptocurrency project. Facebook Libra, the launch of which is so feared by US financial regulators. He also noted the instability of the current fiat currency systems and their closeness to collapse..
text: Ivan Malichenko, photo: Shutterstock