Former Coinbase executive Balaji Srinivasan has criticized the Federal Reserve for its “unpredictable monetary policy.”
Predictable vs. Unpredictable
Srinivasan argues that Bitcoin has a “predictable monetary policy” because its issuance is determined by a set schedule. In contrast, he says the Fed “just pick[s] rates out of a hat” based on outdated data and political motivations.
Fed’s Influence on Risk
Srinivasan believes the Fed’s unpredictability creates risk in the markets. He claims that the Fed’s actions introduce volatility and uncertainty.
Congressional Scrutiny
Some U.S. politicians share Srinivasan’s concerns. Last week, the House of Representatives passed a bill to prevent the Fed from launching a central bank digital currency (CBDC) without congressional approval. The bill’s sponsor, Rep. Tom Emmer, cited concerns about privacy and individual sovereignty.
Fed’s Stance on CBDCs
Fed Chair Jerome Powell has stated that the agency is not considering a CBDC in the near future. However, Srinivasan and others remain skeptical of the Fed’s intentions.
