In recent days, the crypto community has been focused on a debate on the measures taken by the world’s governments, to stop the economic collapse caused by COVID-19. Among them, issuing money to fight the Coronavirus by financing stimulus packages. Which Samson Mow, the Head of Security at Blockstream, considers “stupid” in our Tweet of today:
Issuing money is not the solution
The world is approaching one of the greatest economic crises it has ever faced, that is an undeniable truth. Therefore, and knowing this, it is normal that governments are trying to take all the measures in their hands to avoid a total collapse of the markets.
And among these measures, one of the most important is to issue money to finance fiscal stimulus packages, for billions of dollars. A tactic that Western governments are already beginning to apply, with decisions ranging from unlimited credits to companies, to suspension of payments for public services and rents.
This has triggered a wave of speculation and debate about what the immediate effects of these measures will be. With a group of economists considering that, in fact, the dollar will appreciate, since the stimulus packages will increase the demand for the American currency.
While a sector of the crypto community is waiting for the dollar to depreciate, benefiting Bitcoin as a reserve value asset.
For his part, Samson Mow has also criticized these aid programs. Not only due to the possible depreciation of the dollar, but also because it considers that they focus where they should not. Arguing that the resources of the economic stimulus program should come from a cut to income taxes:
“Why do we see stupid ideas from government officials like minting a trillion platinum coins, but nothing about canceling income taxes? In fiscal year 2019, the revenue of the US federal government it was $ 3.46 trillion. There is your help to the people and your economic stimulus“
Thus, the Head of Security of Blockstream, takes the side of the most liberal sector of the crypto community, to criticize that the first defense of the world’s governments against an economic crisis is to issue money. Precisely, the main criticism of fiat money since the creation of Bitcoin.
Do you think issuing money to fight the Coronavirus is a good idea? Let us know in the comment box.