How does fiscal policy affect the value of digital currencies?

1 answers

• Dec 17, 2021 · 3 years ago
  Fiscal policy can affect the value of digital currencies in various ways. For example, when governments implement expansionary fiscal policies, it can lead to increased inflation. This inflation can erode the value of traditional fiat currencies, making digital currencies more attractive as a store of value. Additionally, fiscal policy can also impact the regulatory environment for digital currencies. Governments may introduce regulations that either support or hinder the growth of digital currencies, which can affect their value. Overall, fiscal policy is an important factor to consider when analyzing the value of digital currencies.
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