BitMEX Founder Sees US Federal Reserve’s US Dollar Swap Lines as a Solution to Problems in the Liquidity Market.
It is reported that Arthur Hayes, the founder of BitMEX, pushed that the US Federal Reserve’s provision of US dollar swap lines to other central banks would help reduce the selling of treasury bond bonds to the liquidity market and help small US banks.
Arthur Hayes: The Federal Reserve provides dollar swap lines to other central banks as a rescue method
Analysis based on this information:
Arthur Hayes, founder of BitMEX, has suggested that the US Federal Reserve’s provision of US dollar swap lines to other central banks would slow the selling of treasury bond bonds to the liquidity market, thereby providing relief to smaller US banks. According to Hayes, the selling of treasury bond bonds by central banks to the liquidity market has a significant effect on the market, as it increases the bond yield and stifles the lending activities of smaller banks.
The provision of US dollar swap lines by the Federal Reserve is a measure that allows other central banks to access the US dollar in exchange for their own currency. These swap lines are essential tools in ensuring that global financial systems remain healthy and stable. While they have been used in the past, with the most recent being during the COVID-19 pandemic, Hayes believes that they have the potential to solve the problems of the liquidity market in the US.
The reduction of treasury bond bond selling to the liquidity market will enable private banks to meet their funding requirements, which will help revive the economy. When central banks sell treasury bond bonds to the market, lenders are forced to increase interest rates for loans, which shrinks the lending pool, making it more difficult for smaller banks to obtain funding. With US dollar swap lines provided by the Federal Reserve, the pressure on the liquidity market will reduce, providing smaller banks with an avenue to access low-cost funds, thereby enabling them to continue to lend and increase their financial stability.
Hayes recognizes that the provision of US dollar swap lines is not a perfect solution, but it is a step in the right direction. It will not only provide relief to smaller banks and boost lending activities but will also have a positive impact on the economy at large. As the US Federal Reserve continues to play a vital role within the global financial infrastructure, it would be worth noting its efforts towards the stability of the global financial market.
In conclusion, Hayes believes that the provision of US dollar swap lines by the US Federal Reserve can help revive the economy by reducing the selling of treasury bond bonds in liquidity markets. Keywords that can be used to describe the message include BitMEX, US Federal Reserve, US Dollar Swap Lines, Treasury Bond Bonds, and Liquidity Market.
This article and pictures are from the Internet and do not represent qiAiAi's position. If you infringe, please contact us to delete:https://www.qiaiai.com/daily/5943.html
It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.
Related recommendations
-
Paradigm Funds Code4rena DAO for Crypto Security
According to reports, the crypto venture capital company Paradigm is funding the Code4rena DAO, which provides incentives to independent auditors seeking vulnerabilities through a $6 million token purchase. Paradigm provides $6 million in token purchase funds for auditing DAO Code4rena Analysis based on this information:Paradigm, a venture capital firm focused on the crypto space, has invested in Code4rena DAO, a project aimed at improving the security of decentralized applications (dApps) and protocols by incentivizing independent auditors to find and report vulnerabilities. The investment comes in the form of a $6 million token purchase, which will fund the DAO and reward auditors with newly minted tokens. Code4rena DAO is built on the Ethereum blockchain, and utilizes smart contracts to manage the reward system for auditors. Auditors can choose to participate in any of the auditions or competitions that Code4rena DAO runs, for which they will receive a reward in the form of the DAO’s native token. The competitions will vary in…
-
Zipmex Reaches Agreement to Reopen Withdrawals
It is reported that the Southeast Asian cryptocurrency trading platform Zipmex reached an agreement with a venture capital company last month to reopen custome…
-
What does 比特币 qc mean (bitcoin-qt)?
What does 比特币 qc mean? According to btcmanager, 比特币 qc stands for \”freedoing\”. I
-
Lugano, Switzerland Launches Bitcoin themed Shared Office Space
According to reports, the city of Lugano, Switzerland has launched a Bitcoin themed shared office space. It is reported that Lugano\’s new joint office space with a focus on Bitcoin
-
Succinct Labs Launches Ethereum Interoperability Protocol Telepathy
On March 17th, Succinct Labs announced the launch of the Ethereum interoperability protocol Telepathy based on zkSNARKs. This protocol allows developers to leverage the security of the Ethereum Lightweight Client Protocol to achieve untrusted communication from Ethereum to other chains. Currently, the protocol has been launched on the main network and a Demo has been released for user experience. Succinct Labs Launches Ethereum Interoperability Protocol Telepathy Based on zkSNARKs Analysis based on this information:Succinct Labs, a leading developer of blockchain-related tools and protocols, has recently announced the launch of Telepathy, an Ethereum interoperability protocol based on zkSNARKs. This new protocol offers a powerful solution for developers who want to achieve untrusted communication from Ethereum to other chains while leveraging the security of the Ethereum Lightweight Client Protocol. With the launch of Telepathy, developers can now leverage the unique benefits of Ethereum without limiting themselves to the Ethereum ecosystem, which means that they can develop applications that can communicate securely and…
-
Timeswap V2 is now Nebula: A Look at the New Features on the DeFi Lending Agreement on Polygon
On February 21, it was reported that the main network of Timeswap V2, the DeFi lending agreement on Polygon, is now online. Timeswap V2 is now named Nebula. Th…
-
21:00-7:00: An Overview of US SEC, ARB Airdrop, Do Kwon, and zkSync
21:00-7:00 Key words: US SEC, ARB airdrop, Do Kwon, zkSync
Overview of important developments overnight on March 24th
Outline:1. Introduction2. Understanding US SEC3. What is ARB A -
Microsoft’s AI Allegedly Trained on Illegally Collected Twitter Data: Musk Threatens Lawsuit
According to reports, Microsoft has been threatened with a lawsuit from Musk, claiming that the large technology company illegally trained its artificial intelligence on Twitter da
-
**SEBC Announces Launch of Binance JAPAN – All You Need to Know**
It is reported that Sakura Exchange Bitcoin Co., Ltd. (SEBC), the Japanese crypto exchange owned by Minoan, announced on the 28th that it plans to launch a new service, Binance JAP
-
Korea’s Financial Supervisory Institute Researches Overseas Virtual Assets
On February 14, according to the source, the Digital Assets Research Group of the Korea Financial Supervisory Institute is focusing on the overseas cases relat…