Everyone is eagerly waiting for the FED to start lowering its rates (pivot). That's what traders are betting on.
In the face of a diverging path of U.S. dollar inflation from its usual trajectory, the United States Federal Reserve (FED) finds itself in a delicate situation. While the digital dollar project seemed to be the first line of defense, the FED now appears to be turning to a 'Plan B': the tokenization of real-world assets (RWA). Why such a pivot, and what can be expected from it?
As the SEC continues its hunt for crypto exchanges, the United States has decided to put the potential of stablecoins at the service of its economic policy. This is what can be deduced from a speech by U.S. Federal Reserve Chairman Jerome Powell, who acknowledges that stablecoins are a form of currency. Where does this sudden interest in stablecoins come from?
Inflation has been galloping for almost two years, mainly due to the profligacy of central banks. Since then, central banks have turned around and become a little more vigilant. Nevertheless, they face a colossal dilemma: the peril of debt or the peril of inflation. It's reasonable to assume that central banks will react this time, as they have every other time: by rearming their monetary bazooka. If so, it could well be the return of happy days for bitcoiners. Let's talk bull run.
All the ingredients for a 2008-style recession are there, says American investor Jim Rogers. But if their peculiarities are anything to go by, the worst is yet to come.
Unlike other cryptos, stablecoins inspire relatively more confidence among users. This is due to the stability of their value, which correlates with that of a fiat currency. However, their monetary status had never been officially recognized. At least, until Jerome Powell, Chairman of the US Federal Reserve (Fed), did so. Is this a turning point?