U.S. Federal Reserve Chairman Jerome Powell is the winner of Forbesâ€™ inaugural â€œPerson of the Year in Cryptoâ€ award, an honor for which the central bank chairman is unlikely to make room on his mantel.
- Because Powell’s Fed effectively printed more than $3 trillion in new money, almost doubling the central bank’s balance sheet in the process, it helped create an atmosphere that converted many long-time crypto skeptics into believers, Forbes noted in the award. Forbes quoted venture firm Pantera Capital as saying the Fed’s actions created “two centuries of debt in one month.”
- That spending spree and concomitant debt explosion led one of the judges, Anthony Pompliano of Morgan Creek Digital, to credit Powell with basically creating a “$3 trillion marketing campaign for bitcoin.”
- Crypto investors have been betting all year that the flood of government and central bank spending to fight the coronavirus-caused economic slowdown will eventually lead to inflation, against which bitcoin is viewed as a hedge.