Do you think this move by the FHFA will become Subprime Crisis 2.0?
#FHFA is like forcing Bitcoin innovation into the old mortgage system; it's true innovation, but the risks are genuinely stimulating.
The Housing Finance Agency wants to use cryptocurrency as a digital savings account for homebuyers to attract young people to step in and take over the properties. However, tying house prices to cryptocurrency prices raises concerns that if cryptocurrency prices crash one day, it could drag the housing market down with it.
This is using cryptocurrency as a political bargaining chip, pleasing voters while trying to maintain financial hegemony. But if it really comes to pass, regulators need to first figure out how to rein in Bitcoin's volatility; otherwise, it could quickly turn into the script for Subprime Crisis 2.0.