Brad Garlinghouse: The Fed’s New Policy Could Boost Crypto’s Popularity

The U.S. Federal Reserve’s shift to a new strategy of abandoning inflation containment will benefit cryptocurrencies. This view was expressed by Ripple CEO Brad Garlinghouse.

The pandemic is throwing so many playbooks out the window… yesterday’s action flies in the face of decades of precedent. Signs point to further dollar debasement in the near term (leading to further diversification of assets which will certainly be good for crypto). https://t.co/5Rpeio8s91

— Brad Garlinghouse (@bgarlinghouse) August 28, 2020

The day before, Fed Chair Jerome Powell said about the regulator’s new inflation-containment policy. The central bank is prepared for inflation to rise above 2%. The new approach will better support the labor market and the economy overall, Powell noted.

Garlinghouse commented on the Fed’s new strategy, which abandons pre-emptive rate hikes aimed at curbing inflation. The central bank had followed this policy for several decades.

“Actions run counter to decades of precedent. Signs point to further dollar debasement in the near term. This will lead to further diversification of assets, which will undoubtedly benefit cryptocurrencies,” he said.

Following Powell’s remarks, Gemini co-founder Tyler Winklevoss noted that the dollar can no longer be considered a reliable store of value and that Bitcoin, as the latter, could surpass the $500,000 mark.

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