The president of El Salvador has requested Fed in the US to halt their operation regarding the printing of more US bills. Earlier it was made clear by the Fed that due to the sudden escalation in inflation and the economy of the country shorting out, certain steps need to be taken sooner than later, and that means that some of the easy money policies which bank did abide by in the past would be gone too.
It is not a secret that El Salvador is a crypto-friendly nation, and the very proof of it is them accepting Bitcoin as a legal tender and making it part of its economy. If any statement or a project comes hurling down into the crypto market and degrading the performance of Bitcoin, then El Salvador does retaliate with its own thoughts on the subject. After the statement of the Federal Reserve chair, Jerome Powell, which was based entirely on the rising inflation and crypto being a driving force behind it, the president of El Salvador has suggested that if the Federal Reserve would just stop printing so much money, then possibly the upcoming crisis regarding inflation could be averted.
El Salvador’s President Warns about Upcoming Crisis
Inflation, without any doubt, is a growing concern not only for the United States but for every other country and nation out there. The news of a new COVID-19 variant hitting the world has earlier made not only the crypto market but also stocks and commodity markets dwindle strongly, and still, these couldn’t completely rebound to a normal operation. The situation might be worse, but it has not yet reached a point where there is a need for printing more money for the sake of averting this crisis. And therefore, Fed printing more money to solve the crisis won’t solve it but would add more to it.
That is why the common sense here would be to stop printing more money and tackle the situation more promptly. El Salvador continues to make steady progress with its Bitcoin endeavours, and many new projects are being launched for the sake of educating the masses regarding crypto and how they could earn a living through the crypto market.