Gemini’s co-founder, Cameron Winklevoss, has given his thoughts on the Federal Reserve’s plan to lend $300 billion to financial institutions.
Winklevoss asserts that the Fed just added $300 billion reasons for adopting cryptocurrencies like bitcoin.
The response from Winklevoss came after it was reported that financially struggling banks had borrowed $300 billion from the Fed’s emergency reserves. The central bank made the whole report available to the general public.
FED loans out $143 billion
More than half of the total amount, or $143 billion, was given to holding companies for Silicon Valley Bank and Signature Bank, two big banks on the verge of collapse the previous week.
As a direct result of this dilemma, widespread fear has been shown throughout the various financial markets.
The Fed did not disclose the identities of the other financial institutions that shared in the distribution of the remaining funds, nor did they release any information on the number of institutions that took part in the process.
The previous weekend’s collapse of two banks provides an early look into the scale of the Fed’s help to the banking industry. These data give an early peek into the magnitude of the assistance.
The Fed has announced the creation of a new credit facility with a capacity of 11.9 billion dollars, further extending its assistance.
As was to be anticipated in response to the news, the cryptocurrency market engaged in a bullish run. The value of the most prominent cryptocurrencies, such as bitcoin, has seen massive price surges as of todays trading session.
In the last two weeks, we have seen the failure of three significant banks that supported cryptocurrencies. The most recent step taken by the Fed demonstrates not just the backing that conventional financial institutions have but also the lack of support in the bitcoin arena.