Could now be a good time to announce a CBDC? The asset/saving-less can be encouraged to sign up to the system with the promise of a $2000/£2000/€2000 stimulus and an ongoing stipend of x amount for however long the crisis lasts (an effective negative rate). Those seeking safety for savings, meanwhile, can be promised the protection of par value, with capital invested strategically redeployed in the system in the shape of zero-rate loans for temporarily struggling businesses?
MakerDAO has been holding crisis talks after dramatic falls in the price of Ether left debt worth about $4 million under-collateralized. At one point, the platform was considering an emergency shutdown as the full impact of “Black Thursday” became clear—with ETH falling by 30% in a 24-hour period.
With the COVID-19 pandemic worsening throughout the world and all major events for May’s New York Blockchain Week effectively canceled, industry publication Coindesk is moving its massive Consensus event to digital.
It looks as if there’s more trouble brewing on the horizon for Ripple Labs. In fact, after a district California Court ruling, we may see a large ‘uptick’ in class actions across the whole cryptocurrency space.
After Bitcoin’s price plunge miners have gone into the red. The decline couldn’t have come at a worse time. In May, rewards in the form of new coins issued to miners will automatically drop in half, further exacerbating losses unless the price rallies.
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Published by kiffmeister
The Kiffmeister is a former Senior Financial Sector Expert at the International Monetary Fund.
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