US House passed Biden’s $1.9 trillion stimulus bill and sent the piece of legislation to the Senate for a vote but, what will this mean for crypto? Let’s try and analyze our latest cryptocurrency news.
Some of the notable parts of the bull include increased funding for vaccine distribution and schools, funding to state and local governments as well as $1400 checks to Americans that make less than $75,000 per year. While this aid is needed by the American people, it still opens up other issues for the financial system of the US. The direct stimulus checks were one of the major campaign promises from the Democrats in the Georgia Runoff Elections and it seems that the US government is one step closer to delivering on the promise.
The bill including a minimum wage increase to $15 per hour, passed the House with 219-212 votes but not a single Republican voted for the bill. However, the current bill will unlikely be the version that Biden will sign as there are plenty of Procedural roadblocks and Democrat inaction which are preventing the minimum wage increase from passing the Senate. The bill will be sent back to the House to be voted on without the minimum wage increase and before landing on Biden’s desk.
The newest relief bill will be the third major stimulus bill passed by the US government since the COVID pandemic started. The stimulus contained about $4 trillion last year to prop up various top financial institutions and sent waves over the international currency markets. The US dollar started losing value after the bill was signed into law and is still declining. Since March last year, the US dollar dropped 10.5%, and now with the new stimulus bill being smaller, it will likely affect the dollar in the coming months. The worries about the devaluation of the dollar are not new as crypto users long pointed out the issues with the state being able to print infinite money.
BTC and other digital currencies touted the advantages of having limited supply where minting new coins is an algorithmic process that is defined in advance which seems like the investors believe these types of systems could have some benefits. As the major economies across the world struggle, people will start looking towards crypto assets as a safer place to hold wealth.
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