A Federal Reserve official praised stablecoins over CBDCs, yesterday. The debate cuts right to role of government in money.
Randal Quarles expressed more support for stablecoins than some of his colleagues.
Bitcoin remains relatively resilient, having priced in the Fed's hawkish tilt in advance.
Bitcoin is under pressure as Fed taper concerns linger, although some expect crypto to remain resilient.
The U.S. central bank also increased estimates of coming inflation to 3% from the 2.2% projection in March, largely due to transitory factors.
This was a significant increase from the 2.4% officials were predicting in March.
Wednesday's Fed policy statement is likely to see a binary market reaction.
Jones said he likes bitcoin and sees it as a great way to protect wealth over the long run.
The U.S. central bank will continue buying Treasury and mortgage bonds to support the economy.
The Consumer Price Index is important to bitcoin investors who are watching for signs of inflation.
Bitcoin continues its descent amid whispers of U.S. Federal Reserve tapering economic stimulus and China's ongoing pressure on crypto miners.
Inflation could send the global economy into recession as central banks lose control, according to Deutsche Bank.
The sluggish economy could prompt the U.S. Federal Reserve to more slowly toward tapering its $120 billion in monthly bond purchases.
The Richmond Fed looks at if and when it may be beneficial for firms to issue a digital currency in a new brief.
“I think policy is rather overdoing it,” the former U.S. Treasury secretary said at Consensus 2021.