In the latest episode of his podcast, Anthony Pompliano signed with Russell Star, Chairman and CEO of DeFi Technologies. In the same time, they talked about the current state of the global economy and how the Fed is hampering the growth of cryptocurrencies and Web3.0.
Russell started with harsh criticism of the federal government and talked about how they twisted the story of inflation. According to executives
“Inflation in the United States is probably close to 20%, and the United States is approaching a recession.”
Russell also touched on how “housing” and “energy” were freed from inflation. In fact, he wasn’t surprised by the high inflation rate after the federal government and the US Treasury began printing.As Forbes As previously reported, in the last two years, the United States has recorded over $ 13 trillion in debt relief, infrastructure, and economic stimulus spending. This was done in three stages: April 2020, December 2020, and March 2021.
If the Federal Reserve raises interest rates by more than 2%, the market is widely expected. When asked if that would happen again, Russell said,
“They are the single biggest debtors and will probably lose the most at higher interest rates.”
As far as cryptography is concerned, he continues to be shocked about how cryptography and Web3.0 are suffering for the federal government. In fact, executives believe that there is growing concern in the United States that “cryptocurrencies are now a bad word and DeFi is even worse.”
Simply put, Russell is one of many executives who believe that regulatory policy is causing serious damage to the industry.
Closing remarks for the future
However, it is worth pointing out that Russell also shares a reality check.
“Here you will feel pain for 3-5 months.”
He argued that the federal government could decide whether cryptography could really thrive in this world economy.
However, Russell is optimistic about private adoption, so there is light at the end of the tunnel. He said,
“What I’m really looking for is the evolution of the organized retail industry to move to this (Defi) space.”
It is no exaggeration to say that his optimism is heading in the right direction. According to DeFiLlama data, DeFi has grown on TVL from $ 800 million in May 2020 to $ 200 billion in May 2022. This is a big boost for decentralized institutions, but it is expected to suffer a few more months after the worst of April.