The U.S. government has extended its daily trillion-dollar repo mission until the end of March, making the entire crypto market cap seem even smaller by comparison. “The Federal Reserve Bank of New York announced it will further extend its daily repurchase agreement operations (also known as ‘repo’) to $1 trillion for the rest of March,” CNBC said in a March 20 news update. “Repos are when banks submit high-quality collateral, such as Treasurys, in exchange for reserves from the Fed,” the news outlet explained. “Banks then use the money to fund their short-term operations.” The Fed keeps ramping up funding …

Bitcoin (BTC) has failed to hold onto gains once again as commentators warn that the interest rate cuts by the Federal Reserve are “not a drill.” After the United States’ central bank cut rates to near zero on Sunday, BTC/USD briefly rallied but on Monday was falling in line with another panic trading session on traditional markets. BTC, stock markets shed 7% 24-hour highs of $5,900 soon gave way to current lows over $1,000 beneath — press time levels center on $4,850. Stocks broadly sank at the opening bell in Asia, Europe and London, with 7% losses commonplace as coronavirus …

The U.S. Federal Reserve injected $168 billion into finance several days ago, which correlates to Bitcoin’s current falling price. “So long as the broader markets keep falling – expect the same out of Bitcoin,” Bill Herrmann, CEO of alternative investment firm Wilshire Phoenix told Cointelegraph as part of an explanation of the Fed’s recent actions. What’s going on in the market? Traditional markets have plummeted recently surrounding coronavirus fears and oil trade wars. After several previous red days, the Dow Industrial Average (DJI) fell 10% on March 12, concluding the most disastrous day U.S. markets have seen since the Black …

A blockchain lending firm has seen the value of total loans funded surge to $1 billion since the United States Federal Reserve announced its emergency stimulus interest rate cut last week. In an announcement on March 10, Figure Technologies — which claims to be the industry’s first fintech to bring lending to the blockchain — said loan applications with the firm had soared by 300% since the Fed’s action. Unprecedented low interest rates Since its launch in 2018, Figure Technologies has used its blockchain, Provenance, to process consumer loans; one year on, the firm claims it was originating $85 million …

The United States Federal Reserve has funneled the equivalent of half the entire Bitcoin (BTC) supply into the economy — but banks want even more money. As the New York Fed confirmed on its website, so-called repurchase operations, or “repos,” totalled $89 billion on March 5 alone. Coronavirus sparks liquidity scum Repos are designed to provide temporary liquidity to lenders. As Cointelegraph previously noted, the practice is akin to conjuring fiat value out of thin air. The Fed was reacting to economic weakness in the face of coronavirus, having already cut its interest rate target significantly this month. Thursday’s liquidity …

As multiple countries and entities weigh the validity of a central bank digital currency the physical United States dollar still sits in a place of dominance — but for how long? “The dollar is the dominant currency today,” ING economist Carlo Cocuzzo said on a panel at London Blockchain Week. Cocuzzo added that “90% of forex turnover is in dollars, so the U.S. stands to lose in this game.” A September 2019 report from The Bridge showed similar prominence, with USD tallying 60-70% of foreign exchange reserves. Countries and companies look to CBDCs with interest Over the past year, various …

Your bank, no matter how neo or how challenger, can’t bank Bitcoin (BTC). They could bank blockchain companies, adding value and providing services for the space, which would be good for both the bank and the clients, but they are afraid of repercussions from regulators and their partners. Since many smaller banks use “correspondent banks,” whose direct access to the Federal Reserve system’s FedWire and other official payment rails they leverage, they can’t make the decision to accept Bitcoin clients in a vacuum. They must consider their correspondents (generally, big banks), who don’t want their partners working with crypto — …

The United States Federal Reserve will cut its interest rate target to compete with Bitcoin (BTC) post-halving, traders believe. As Reuters reported on Feb. 28, Wall Street traders already consider the likelihood of the Fed cutting rates to boost the economy over coronavirus to be more than 75%. Fed “monitoring” coronavirus By September, the cuts could total 0.75%, bringing the short-term interest rate below 1% for the first time in three years. The Fed did not appear rattled by coronavirus, which is now spreading more quickly outside its epicenter of China than within it. “I think it would be premature …

Conservative United States think tank the Heritage Foundation argues that instead of launching a central bank digital currency (CBDC), the government should ensure that the public can use the currencies they prefer, including private ones. In a commentary piece published on Feb. 12, the Heritage Foundation notes that Facebook’s Libra global stablecoin project “is just the latest reminder that providing money does not have to be a centralized function of government.” The report answers to the idea that the public sector must ensure that sovereign currencies stay at the center of each nation’s financial system: “Government officials should not suppress …

A member of the United States Federal Reserve’s board of governors has signalled that the institution is more open to the idea of central bank digital currency than previously. Lael Brainard — who chairs several Fed committees — made her remarks during a speech at a symposium on the future of payments at the Stanford Graduate School of Business on Feb. 5. In her speech, Brainhard said the Fed was “conducting research and experimentation related to distributed ledger technologies and their potential use case for digital currencies, including the potential for a CBDC (central bank digital currency).” Debate has taken …

A member of the United States Federal Reserve’s board of governors appears to believe that one in four people who use Bitcoin (BTC) are criminals. Lael Brainard highlighted the perceived risks still posed by cryptocurrencies in remarks delivered today in Frankfurt Germany. Brainard was speaking as part of a panel honoring Benoît Coeuré, a member of the executive board of the European Central Bank (ECB). Brainard: crypto exchange security troubling Specifically selected for the panel, which formed part of the “Monetary Policy: The Challenges Ahead” event in Frankfurt, Germany, was illicit activity involving Bitcoin. According to Brainard, who cited an …

The United States central bank will inject at least $425 billion of nonexistent money into the economy by the middle of next month. In a statement released Dec. 11, the Federal Reserve confirmed it would ramp up so-called repurchase, or “repo,” operations on key dates over the new year period. Fed to “print” 3x Bitcoin market cap in weeks The time of year required extra assurances for banks, the Fed claims, with repo operations designed to support their day-to-day operations. “The Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York has released the schedule of …