Crypto-Twitter exploded with horror to the news that the US Federal Reserve has been given the mandate to print as much new money as it requires to avoid a deeper financial turmoil due to the spread of the coronavirus.
The CEO of Cardano developer, IOHK, Charles Hoskinson, tweeted on March 23 that he is now getting a ‘real OneCoin vibe’ from the U.S. Dollar.
Congress allows the Fed to print more money
Neel Kashkari, the President of the Federal Reserve Bank of Minneapolis, referred to this situation as being an unlimited amount of cash at the federal reserve. He was speaking in an interview with CBS’s 60 Minutes. After being pressed on his opinion, he said:
“That’s literally what Congress has told us to do. That’s the authority that they’ve given us: to print money and provide liquidity into the financial system.”
The idea of the Federal Reserve being given the go-ahead to print an infinite amount of new money made Hoskinson’s to compare the USD to OneCoin. Previous reports revealed that OneCoin scam made over $4 billion from unsuspecting clients who did not know that the token they were buying had no underlying value.
Pompliano and Changpeng Zhao less blunt
Several other industry leaders were quick to voice their opinions. However, they were a bit lenient on the matter. Anthony Pompliano, Morgan Creek Digital co-founder, tweeted about the U.S. Dollar’s now-unlimited supply, stating:
“History tells us that this is not sustainable long-term for a currency.”
In the meantime, Changpeng Zhao, Binance CEO, gave the Fed an Economics 101 lesson in his tweet. He posed the following teaser:
“Ever heard about ‘supply, demand, and price’? What happens to price when you have infinite supply?”
Bitcoin price reacted to that news by blasting back up past the $6,000 level and onwards to hit $6,500 at one point.