- POTUS refused to discuss the stimulus package until the US Presidential elections
- Last stimulus package of the US, many trading platforms witnessed an inflow of deposits near equal to the amount paid in the stimulus package
- Ripple is planning to shift their operations to a country with a more favourable regulatory framework
It’s not even a week when the news of POTUS being struck with COVID-19 and then within three days news of him being recovered made the headlines. POTUS has made the headlines again and this time for entirely different reasons; stimulus package. He refused to discuss the stimulus package until the US Presidential elections. The crypto-stock market is already falling and Bitcoin, the common of all, has already seen the worst of falls of this year.
What is the Stimulus Package for the Crypto World
At the time of the last stimulus package of the US, many trading platforms witnessed an inflow of deposits near equal to the amount paid in the stimulus package. A prevailing theory over the internet goes by that the US citizens for avoiding the inflationary consequences converted their stimulus money to digital assets.
Though not the intention of the government but the new money in the market proved as a boon for the cryptocurrency world. The inflow of the new cash attracted users towards the trading activities, thus creating awareness and mass adoption of the digital assets. The stock market has higher chances of collapsing as they are connected with the country’s growth, cryptocurrencies have no such boundary. Thus, there is a higher possibility that the stimulus package will bring more users from fiat towards digital assets.
How will this Directly Affect Cryptocurrencies?
In simpler terms, to meet the demand of a crippling economy, the government will continue to print more money, ultimately making the country’s fiat weaker in value. This can already be witnessed in many countries where people do not trust the local fiat but prefer digital assets. The shift from traditional stocks to the cryptocurrencies among the global investors and traders is already visible to the world.
Ripple to Move Operations Out of the US
On October 6, during the LA Blockchain Summit Co-founder Ripple, Chris Larsen commented that their company doesn’t want to bear any more the strict regulatory policies. Further in his speech he hinted that the Ripple is planning to shift their operations to a country with a more favourable regulatory framework. The UK, Switzerland, Singapore, and Japan are few of the tentative countries under consideration revealed by the company’s CEO.