The Federal Reserve has consistently undershot its 2% inflation target since the Great Recession of 2008, and the situation has only worsened this year due to the coronavirus pandemic. This is leading some to speculate that, should the central bank implement a digital dollar – which it’s not close to doing at present – soaring inflation will soon follow.
Jeffrey Gundlach, chief executive of California-based investment management firm DoubleLine Capital, recently published a report titled “The Pandora’s Box Of Fed’s Digital Currency Will Ignite An ‘Inflationary Conflagration.’” It says:
“With CBDCs, the central banks would possess the necessary plumbing to directly deliver a digital currency to individuals’ bank accounts, ready to be spent via debit cards. Such a mechanism could open veritable floodgates of liquidity into the consumer economy and accelerate the rate of inflation.”
Read more: https://www.coindesk.com/digital-dollar-inflation-cbdc-debate
