US Fed begins quantitative tightening, Japan restricts stablecoin issuance an...
Coming every Saturday, Hodlers Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more a week on Cointelegraph in one link.Top Stories This Week Fed money printer goes into reverse: What does it mean for crypto?Over the last two years or so, the United States Federal Reserve has flooded the financial system with excess liquidity benefiting stocks, crypto and other markets as well. Now, the Fed is going in the opposite direction in order to combat....
Related News
Bitcoin has not grown at the rapid rate expected so far in the cycle, and some have blamed this on the fact that the Federal Reserve has been practicing quantitative tightening. This refers to a period when the central bank is reducing its money supply in a bid to reel in excess liquidity. As a result, buying power seems to have fallen as there isn’t enough liquidity flowing into risk assets such as Bitcoin. However, this could all be changing very soon as the Fed begins to change its stance. Quantitative Easing Could Bring About More Liquidity After a long stretch of quantitative....
Japan’s top financial regulator, the Financial Services Agency (FSA), is reportedly planning to propose legislation to restrict stablecoin issuance to banks and wire transfer companies. Crypto service providers involved in stablecoin transactions, including wallets, will also be brought under the financial regulator’s oversight.
Japan to Tighten Stablecoin Regulation
Japan’s Financial Services Agency (FSA) is planning to tighten the regulation of stablecoins by imposing strict rules on their issuers, Nikkei reported Monday, stating:
The Financial....
The Federal Reserve is now days away from halting its multi-year balance-sheet reduction, and the shift is beginning to ripple through Bitcoin and crypto discussions. The approaching end of Quantitative Tightening (QT) is a clear turn in monetary policy, and analysts are already pointing to historical parallels from the last time QT stopped. One particular […]
Quantitative Easing and Bitcoin. The European Central Bank has recently announced a 1.1 trillion Euro sovereign bond purchasing program. This action in broadly referred to as Quantitative Easing. It is a monetary policy brought into existence by the Bank of Japan on March 19th, 2001. The first concept to understand in relation to Quantitative Easing is that no expert or policy-maker truly knows how this monetary experiment ends because it is a historically unprecedented action. A 15 year existence is a negligible amount of time in the history of human commerce. With that in mind, while....
The Japanese government is rushing to enforce new stablecoin laws in the aftermath of the Terra collapse. Japan is moving forward with legislation regarding the issuance of stablecoins i.e. digital assets with their value pegged to fiat currencies or stabilized by an algorithm. On June 3, Japan’s parliament passed a bill to ban stablecoin issuance by non-banking institutions, local news agency Nikkei reported. The bill reportedly stipulates that the issuance of stablecoins is limited to licensed banks, registered money transfer agents and trust companies in Japan.The new legislation also....