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There’s growing risk of fiscal dominance in the U.S., with ever-growing debt and deficits likely on an unsustainable path, and that should be good news for bitcoin (BTC-USD), according to Standard Chartered’s Geoff Kendrick. Donald Trump winning the presidential election would be a boon for digital assets as well, he added.
Fiscal dominance is an economic condition that occurs when governments’ fiscal actions overshadow the independence of monetary policy. That, in turn, potentially undermines central banks’ ability to control inflation as they would be forced to accommodate government spending.
Such a scenario would likely have several implications for the Treasury yield curve:
