Scott Bessent encourages Japan to raise interest rates to stabilize the yen.
U.S. Treasury Secretary Scott Bessent encouraged Japan to raise interest rates to stem the sliding yen. This move by a top official in the world's largest economy aims to influence the monetary policy of another nation.
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While bitcoin's monetary policy is fixed in its code, it still reacts to traditional market shocks. For example, in early August 2024, a Bank of Japan rate increase drove the yen higher and caused a risk aversion wave that impacted bitcoin prices. Bitcoin proponents argue that its predictable supply schedule makes it a better store of value compared of to traditional finance, which currently faces uncertainty. Traditional markets are currently experiencing rate and currency shocks. When Japan increases rates, it may cause foreign investors to sell Japanese stocks and Japanese savers to bring money home. These actions could lead to a other risk assets being sold off.
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U.S. looks to influence Japan's monetary policy. It couldn't do that with bitcoin: Crypto Daily
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