On July 22, 2020, the United States Office of the Comptroller of the Currency published a letter clarifying that national banks and federal savings associations can indeed take custody of cryptocurrency assets. In the letter, was also acknowledged as “the first widely-adopted cryptocurrency.” On the same date, VISA, one of the largest payment companies with access to over 61 million merchants globally, revealed plans to offer Bitcoin (BTC), Ether (ETH) and payments.
These steps toward mainstream acceptance come at a fortuitous yet harrowing time for world economics. Unprecedented quantitative easing, a fiscal stimulus and private bailouts have all returned in a much larger form than they existed in 2008. This time, however, it has all come in response to the COVID-19 pandemic crisis. The Federal Reserve along with central banks around the world are responding to the current financial crisis with trillions of new monetary units, leading to trillions more in existing state debt. A sudden and exponential increase in a nation’s monetary supply usually leads to high levels of inflation and, eventually, a mass devaluation of the currency. And in these situations, a cryptocurrency such as BTC, which has a fixed number of units, mathematically guaranteed, holds a unique inflation-proof value for investors.
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