Two years ago, US President Trump announced Powell as the chairman of the Federal Reserve in the Rose Garden outside the White House and said that he chose Powell because "he is strong, very determined, very smart"; two years later, Trump accused Powell, gun The Fed seems to have become a commonplace thing.
All of this stems from the difference in policy philosophy. As we all know, the Fed has been characterized as a neutral regulatory body, not subject to the intervention of the US president or the US government, and is not subject to the administrative and legislative departments. Trump has repeatedly broken the tradition of not interfering with the independence of the Fed.
This time, Trump and Powell, who have been complaining for a long time, have "opened up" in the digital currency field.
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"No one knows more about tariffs than I do." "No one knows trade better than I do." "No one knows more about politics than I do." "No one knows technology more than I do."… Unsurprisingly, Trump seems to be boasting again. I want to say, "No one knows the digital currency better than I do."
Last night, Trump said in Twitter, "I am not a fan of Bitcoin or other cryptocurrencies. These are not currencies, and their value base is out of thin air. Prices are subject to change. Unregulated crypto assets will It encourages illegal activities, such as illegal activities such as drug trafficking. Similarly, Facebook Libra's “virtual currency” will be almost non-binding or reliable. If Facebook and other companies want to become a bank, they must seek to acquire a new one. Bank licenses, like other banks, comply with all domestic and international banking regulations. There is only one real currency in the United States, which is stronger, more reliable and reliable than before, and is the most dominant in the world. Money, and will always be like it, it is called the dollar!"
However, the majority of netizens do not seem to buy it, and the value of the dollar is also "out of thin air." In fact, from the perspective of foreign exchange reserves of central banks, the status of the dollar is declining.
Nathaniel Popper, a New York Times reporter and author of Digital Gold, commented in the tweet that it is no longer possible to say that cryptocurrencies have been ignored.
At the same time, Coinbase CEO Brian Armstrong also tweeted, "Achieve unlock! Years ago, I imagined that an incumbent US president needs to respond to the growing use of cryptocurrencies. They first ignore you and then laugh at them. You, then fight with you, and finally you will win. We just completed the third step."
In addition, Circle CEO Jeremy Allaire also said, “This may be the biggest bull market signal in the history of Bitcoin. The cryptocurrency is now a presidential or global policy issue. People around the world will accept a mix of sovereign and non-sovereign digital currencies. ""
Obviously, the digital currency represented by Bitcoin has had a big impact on the existing financial and monetary system. It seems imperative that people will have currency freedom.
"Singing the opposite" Powell
Powell often sings against Trump and it’s nothing new.
When Facebook published the Libra white paper, Powell said, “The Fed has been meeting various companies in the financial industry at the financial technology level. These companies are undergoing a lot of innovation. The digital currency like Libra has attracted a lot of attention, it is very May replace the more traditional currency."
Although Powell also expressed concern about whether Libra would cause problems such as money laundering, financial instability and user privacy, he believes that no institution can supervise Libra, including the Federal Reserve. The government may need to establish a new regulatory body to solve this problem because the current regulatory system does not have what it needs. Libra will be an important discussion topic at the G7 Finance Ministers and Central Bank Governors meeting next week.
Powell’s high expectations for Libra or digital currency are not a whim, and the dialogue from the Senate Banking Committee hearing can be a glimpse. He believes that in the global economy, Bitcoin, as a value reserve, is constantly replacing the role of gold in the global economy. In the long run, Bitcoin is likely to replace the US dollar. The United States should not assume that the status of the US dollar as a reserve currency will last forever.
Of course, no matter how Trump and Powell argue, it is undeniable that digital currency has become an emerging force that cannot be ignored. After all, countries around the world are planning ahead.
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