Since the beginning of the pandemic, we’ve seen major increase of paper dollars in circulation. Analyst Wolf Richter explains why:
During a crisis, people load up and hoard cash, much of it overseas, and to meet this demand, banks have to buy more currency from the Fed, usually paying with Treasury securities for this paper.
You can clearly see the rapid increase in the yellow shaded area of the official “Currency in Circulation” chart below:
Continue reading “Fed Opens Door for a Digital Dollar (and a Battle for Your Privacy)”
