The Bank of Japan announces unlimited stimulus to help the economy recover

The central bank of Japan has joined the likes of ECB and US Federal Reserve in buying unlimited government debt in the wake of coronavirus pandemic. Crypto analysts believe that such creation of unlimited fiat will be bullish for the price bitcoin leading into its halving event next month. The policy change by BoJ comes in the same month when the government declared a state of emergency in response to rapidly growing numbers of coronavirus victims in the country.

Restriction in free movement causes the economy to a standstill.

Japan is not the only country that has announced unlimited stimulus packages. Earlier, the USA Federal Reserve and European Central Bank announced similar packages. In Japan, and other nations around the world, restrictions to movement have forced economic activity in many sectors of the economy to all but a standstill. The central bank of Japan has committed to creating as much money as it will take to keep the nation’s economy afloat in the midst of coronavirus pandemic. The central bank reversed a prior guideline that stated it would only take on 80 trillion yen worth $753 billion of government debt annually.

The Bank of Japan has increased its capacity to buy corporate bonds and commercial paper.

In addition to the removal of any cap on government debt purchases, the central bank has also increased its capacity to buy corporate bonds and commercial paper. The Bank of Japan has committed up to 20 trillion yen, which is more than twice the prior figure, to support struggling companies in the country.

Some in the crypto community believe that the decision to print unlimited cash could boost the bitcoin’s price. Crypto analyst, TheMoon tweeted that we are witnessing the historic printing of currency globally, which is extremely bullish for the leading cryptocurrency. The more money is put into the economy, the value of each unit of currency decreases and causing hyperinflation.