Are Central Banks Whistling Past the Crypto Graveyard?
Many have embraced cryptocurrencies in an attempt to escape debasement of the world’s fiat currencies. Crypto champions, however, are missing the supreme irony: They themselves are printing money at a rate that dwarfs the speed of the legal-tender presses of the world’s central banks. This explosion in crypto “money supply” could ultimately debase crypto coinage itself and threaten consumer, credit and securities markets. The U.S. Federal Reserve and the European Central Bank have recently begun to address these risks, but they are moving at a slow inertial pace that could cost them control of the money supply.