Russell Star, Chairman and CEO of DeFi Technologies, was Anthony Pompliano’s guest on the latest episode of his podcast. In the same conversation, they discussed the current global economic landscape and how the Federal Reserve is hindering crypto and Web 3.0 growth.
Cryptocurrencies are becoming a major part of the global financial system. But they are still not widely accepted as a form of payment. That’s because they are so new and their technology is so complicated. They are also still a tool of speculation. So most people do not trust them. But the market is growing and it is only going to get bigger. That’s why we should all take note of the current monetary policies that are harming the cryptocurrency industry.
A damning critique of the Fed was Russell’s opening statement, in which he talked about how they distorted the inflation narrative. The executive reported that inflation in the U.S. is likely to reach 20% and that the U.S. is entering a recession.
Crypto Is A Bad Word, DeFi – Even Worse
He also mentioned that inflation was removed from the “housing” and “energy” sectors. After the Feds and the US Treasury went on a printing spree, he was not surprised at the high inflation rates.
The United States has printed over $13 trillion in debt relief, infrastructure, and stimulus spending over the past two years, Forbes reported earlier. Three phases were completed – April 2020, December 2020, and March 2021.
Markets anticipate an increase in interest rates by more than 2% if the Federal Reserve does so. Russell said, “If it happens again, you can expect it to be much larger.”
“They are the largest debtor and will lose the most if interest rates increase.”
In terms of crypto, he still finds it shocking that crypto and Web 3.0 are suffering because of the Feds. According to the executive, “crypto is now a bad word in the U.S., and DeFi is even worse.”.
Russell is one of the many executives who believe that current regulatory policies are harming the industry.
Cryptocurrency Predictions
Russell, however, did give a reality check, claiming:
“We are going to have some pain for the next three to five months.”
Cryptocurrency’s success in the global economy is up to the Fed, he argued.
Russell is optimistic about private adoption, however, so there may be light at the end of the tunnel. He said,
“What I’m really looking to is institutional retail evolution of moving into this (Defi) space.” It seems fair to say that his optimism is on the right track. In terms of TVL, DeFi has grown from $800 million in May 2020 to $200 billion in May 2022, according to a DeFiLlama report. Decentralized institutions are likely to experience a few more painful months after an abysmal April.
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Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
