Fed increases exposure to Bitcoin

Charlie Taylor

In March of this year, Jerome Powell, current chairman of the Federal Reserve, said he did not expect the Fed to adopt Bitcoin any time soon. Well, that day has arrived and the FED may have been one of the first to invest in MicroStrategy's Bitcoin DriveIt is not new that we know that the Fed has an extremely skeptical position in relation to cryptocurrencies. In recent months during the bitcoin-accompanied altcoin boom, Jerome Powell and Janet Yellen, the Federal Reserve's chairman and secretary of the Treasury, respectively, have been critical of bitcoin. In February, Yellen said she considers bitcoin a form “extremely ineffective” to carry out transactions and strongly criticized the energy expenditure of transactions. Powell also stated that he classed cryptocurrencies as purely speculative assets, and reported that he “doesn't expect the Fed to adopt Bitcoin anytime soon.” Well, intentionally or not, this day has arrived. With the crash caused by the COVID-19 outbreak around the world, the Fed saw the need to intervene in the markets by injecting liquidity into funds traded on the securities exchange, among others. The injection made the bank the fourth largest owner of the Bloomberg Barclays High Yield Bond (JNK) SPDR ETF, according to Bloomberg data. About 0.01% of this ETF is dedicated to junk bonds issued by MicroStrategy Inc. Wednesday (09) to buy Bitcoin. So technically the Fed has put the tip of its toe in a pool of encryption, contributing minimally to helping MicroStrategy's planned cryptographic waves."It's a very small amount, but to be honest I'm surprised to see you there so soon", said Athanasios Psarofagis, ETF analyst at Bloomberg Intelligence. The event sounds like a funny prank played by fate, highlighting the paths the Fed's expansionist policies lead, and how they point, to perhaps an inevitable future.To stay up to date, follow the QR Capital on Instagram and on Twitter.FED Content Increases Bitcoin Exposure First Appears in BlockTrends – Blockchain | Investments | Economy.

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