The European Central Bank (ECB) may fear default, as rumours circulate that it plans to plant at least half a trillion euros of „bad“ debt in a „bad bank“.

As Reuters reported on June 10 quoting two people familiar with the issue, the ECB now wants to quarantine its „financial rubbish“.

A flight attendant from the United Arab Emirates could go to jail for failing to repay a loan of more than USD 100,000 to buy crypts

ECB praises „useful“ asset management companies
The reason, according to the sources, is that rising unemployment can fuel the risk of massive default on debt obligations.

Even excluding the increase in unemployment due to coronavirus, the Eurozone already has a debt of USD 500 billion that is unlikely to be paid. This includes credit cards, loans and mortgages, says Reuters.

The ECB has refused to confirm the plans, which it had already considered several years ago, but has shelved them.

A „bad bank“ would supposedly protect other fragile lenders from the economic misery associated with the coronavirus. It could take the form of an asset management company, something an ECB spokesman seemed to favour when asked this week.

According to Fidelity: A third of institutions have invested in cryptosystems

„I’ve been very supportive of asset management companies. I think they are useful,“ bank chief supervisor Andrea Enria said at a press conference.

On the subject of bad banks, Enria added:

„Many of these schemes have ended up in the black, making profits.“

The Federal Reserve is about to comment on the printing of historical money
The plans follow the fact that the Bitcoin Method doubled its stimulus measures against the coronavirus to 1.35 billion euros. In the U.S. this week, the Federal Reserve will meet to establish a plan to manage the economic consequences of the crisis.

The Fed has had no record of printing money since March; Cointelegraph noted that its balance sheet is now $7.16 billion, up $3 billion in three months.

Japanese company introduces new privacy feature for Bitcoin wallets

One analyst spoke to the Financial Times and said the market was „hungry for guidance“ from the Fed, amid fears of a second wave of coronavirus infections and that paradoxical laissez-faire attitude to social alienation taken by the authorities during the ongoing protests in the United States.

The increase in debt is one of the main arguments for „hard“ money like Bitcoin (BTC). The ability of central banks to print money without backing is an impossible idea for major cryptomoney, since for network participants to agree, they would have to accept a decrease in the value of their own savings.

Fiat’s inflation contrasts sharply with Bitcoin’s reduced supply, which one analyst compared to a flattened coronavirus infection curve this week.