Former Coinbase executive Balaji Srinivasan does not have a favorable view of the U.S. Federal Reserve. Taking to the social media platform X, Srinivasan highlights the Fed’s “unpredictable monetary policy” in comparison to Bitcoin (BTC), which he describes as having a “predictable monetary policy.”
According to Srinivasan, if one were to create a graph comparing Bitcoin’s predicted issuance with its actual issuance over the last 15 years, they would perfectly align. He believes that this predictability is just as important as the scarcity of the currency itself.
Srinivasan also criticizes the Fed for introducing risk into the markets. He argues that the unpredictability and volatility in the markets stem from the decisions made by the Fed committee, which he claims base their interest rates on outdated data and political motives.
In addition to Srinivasan’s concerns, some elected U.S. politicians are also wary of the Fed and seek to limit its power. Recently, the House of Representatives passed a bill, sponsored by Republican Majority Whip Tom Emmer, that would prevent the Fed from launching a central bank digital currency (CBDC) without authorization from Congress. Emmer aims to safeguard Americans’ right to privacy and believes that any development of digital money should align with the values of privacy, individual sovereignty, and free market competitiveness.
Fed Chair Jerome Powell, however, has stated that the agency is currently not considering or adopting a CBDC.
It is evident that there is growing skepticism and debate surrounding the role and policies of the U.S. Federal Reserve, with individuals like Srinivasan and Emmer advocating for alternative approaches and greater control over the future of digital currencies.